CONSOLIDATED FINANCIAL STATEMENTS >
DIRECTORS’ REPORT
78
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
The Prysmian Group is exposed in the normal conduct of its
business to a number of financial and non-financial risk factors
which, if they should materialise, could also have a material
impact on its results of operations and financial condition. The
Group has always worked to maximise value for its shareholders
by putting in place all necessary measures to prevent or
mitigate the risks inherent in the Group’s business, which is why
it adopts specific procedures to manage the risk factors that
could influence its business results.
In view of the increasing complexity of its business, the
constantly evolving legislative and regulatory environment, and
the continued instability of the economy and financial markets,
the Board of Directors decided in 2012 to devote even more of
the Group’s attention to risk management. In accordance with
the “Italian Stock Exchange Self-Regulatory Code for Listed
Companies - Ed. 2011” (Self-Regulatory Code) and international
best practices, the Prysmian Group has developed a dynamic
Enterprise Risk Management (ERM) system intended to
identify, measure, analyse and evaluate risk situations or events
that could impact the achievement of the Group’s strategic
objectives and priorities. The system is managed in a structured
and systematic way and acts as a support to the Board of
Directors and management in knowingly evaluating the most
effective approach to adopt in order to mitigate the impact
of such risks and thus enable the achievement of strategic
objectives.
The ERM system is an integral part of the essential system
of internal control and risk management to ensure the
effectiveness of the Group’s corporate governance structure.
This structure is based in turn on the recommendations and
rules contained in the “Self-Regulatory Code”, which the Group
has adopted; the “Corporate Governance” section of this report
provides information about the structure adopted and related
responsibilities and also outlines the contents of the documents
that comprise the Organisational Model, adopted by the Group
on 27 August 2008. This model of organisation, management
and control is specifically designed to prevent the commission
of the offences envisaged by Legislative Decree 231/01 and
to directly support the effective application of specific risk
management procedures. Prysmian updates its Organisational
Model on an ongoing basis to reflect changes in regulations,
new legal interpretations and pronouncements and the
guidelines of Confindustria (Italian confederation of industry).
The Prysmian Group adopts and will continue to adopt a global
approach to the risk factors to which it is exposed, using a
RISK FACTORS
AND UNCERTAINTIES
CONSOLIDA ED FINANCIAL STATEMENTS >
DIRECTORS’ REPORT
