12 CORPORATE GOVERNANCE CMC’s business is conducted by its employees, managers and officers, under the direction of the Chief Executive Officer and the oversight of the Board, to enhance the long-term value of the Company. Approximately one-third of the total number of directors are elected each year to serve a term of three years. The board selects the CEO and oversees the executive management team, who are responsible for the day-to-day conduct of the company’s business. Our board has four regular committees: • Audit Committee • Compensation Committee • Finance Committee • Nominating and Corporate Governance Committee Committee charters and corporate governance guidelines are posted on our website at ir.cmc.com. IDENTIFYING EMERGING SUSTAINABILITY ISSUES CMC’s Risk Management Committee, which is made up of the executive leadership team and other senior management, systematically identifies and assesses emerging sustainability issues. Every quarter, this committee of executives meets to discuss and categorize all potential risks, including those from an operational, ethical, legislative, market, employee workforce or reputational perspective. Sustainability issues addressed within this framework include risks related to transparency and reporting, availability of skilled labor, succession planning and emerging environmental and social regulations. At each meeting, the top ten current risks are assessed in terms of likelihood and magnitude of impact. The top risks identified through our risk assessment framework are reported to the Board of Directors and managed at the Board level, including determining a response strategy and monitoring progress on those strategies. CMC’s Director of Internal Audit and Compliance manages our enterprise risk management process. CMC also identifies emerging sustainability issues through its membership and active participation in several industry association committees focused on topics of safety, health and environmental stewardship. These partnerships include: • American Association of State Highway and Transportation Officials (AASHTO) • American Concrete Institute (ACI) • American Institute of Steel Construction (AISC) • Buy America Steel Products Association • Association for Iron and Steel Technology (AIST) • Concrete Reinforcing Steel Institute (CRSI) • Institute of Scrap Recycling Industries (ISRI) • International Steel Trade Association (ISTA) • Metal Building Manufacturers Association (MBMA) • Metals Service Center Institute (MSCI) • Polish Steel Association (Hutnicza Izba Przemysłowo Handlowa) • Scrap Association (Izba Przemysłowo Handlowa Gospodarki Złomem) • Singapore Business Federation • Singapore Metal & Machinery Association • South East Asia Iron and Steel Institute • Steel Joist Institute (SJI) • Steel Manufacturers Association (SMA) • Transportation Research Board (TRB) • U.S. Green Building Council (USGBC) By identifying and proactively addressing risks and opportunities, CMC protects and creates value for all stakeholders, including shareholders, employees, customers, regulators and society overall.