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Repsol as an investment Risk management at Repsol

Risk management at Repsol

Risk management

The Repsol Group carries out its activities in many different countries, conditions, and environments and across all the phases of the energy business value chain. Therefore, it is exposed to a variety of strategic, operational, and financial risks that may affect the company's future performance and that must be mitigated in the most effective way possible.
Repsol's organization, procedures, and systems enable it to reasonably manage the risks to which it is exposed. This is an integral element of the group's decision-making processes, both in its corporate governing bodies and in business management.

Integrated Risk Management System (IRMS)

Repsol has been working on an integrated risk management model for years with the aim of anticipating, managing, and controlling risks with an overall perspective. Repsol's Integrated Risk Management System (IRMS) makes it possible to provide a comprehensive and accurate vision of all the risks that could affect the company, regardless of their nature.
The IRMS is based on in Repsol's Risk Management Policy, approved by the company's Board of Directors, and whose principles are set out in the Norm on Comprehensive Risk Management. This new management model is inspired by the international reference standard ISO 31000 and the Three Lines of Defense Model.
The fundamental principles of the IRMS are:
  • Leadership of integrated risk management by senior management, providing the necessary resources, and ensuring that the organization works in accordance with these principles
  • Integration in all management processes, always with the global approach provided by the Risk Policy Division
  • Differentiated responsibility of the units and bodies involved, based on the "three lines of defense" model.
  • Global and harmonized management, which ensures that all risks are managed according to the same identification, assessment, and resolution process defined in the ISO 31000 standard
  • Continuous improvement by regularly reviewing the management framework
Tipología de riesgos

Repsol maintains a risk profile aligned with low-to-medium risk tolerance, which is suitable for the business model of a global, integrated energy company that operates across the entire value chain in a range of diverse activities. This commitment combines quantitative and qualitative elements based on criteria and principles that are inherent to our strategy, culture, and values.

Repsol's senior management not only sees the IRMS as a tool to define the company's strategy but also to improve operations and flexibly taking on critical situations, coming out stronger.

Creating a risk map

For Repsol, the Risk Map is the key component that identifies the relevant risks and classifies them according to their importance. To this end, the company has a methodology that makes it possible to easily, comprehensibly, and substantially characterize risks and quantify the potential financial, reputational, and personal impact that the business unit or area could undergo in the event that the risk occurs.

Consequently, Repsol annually produces a company-wide, consolidated Risk Map. A large number of experts from Repsol's businesses/areas contribute to this map, which provides us with a global view of the key risks using a common metric and allows us to identify efficient mitigation measures.

Consolidated annual management report

See the report for more information on Repsol Group's main risk factors.