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PRYSMIAN GROUP | DIRECTORS’ REPORT
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Planning and Reporting Risks: risks related to the adverse effects of incomplete, incorrect and/or
untimely information with possible impacts on the Group's strategic, operational and financial
decisions.
In compliance with recent amendments to the Corporate Governance Code published in July 2015, the
Group Risk Model has been revised to include, as part of strategic risks, the issue of Corporate Social
Responsibility with the purpose of identifying more precisely the Group's economic, environmental and social
sustainability risks which, over time, could jeopardise value creation for its shareholders and stakeholders.
The Board of Directors has also given the Compensation and Nominations Committee, with effect from 1
January 2016, responsibility for supervising the sustainability issues associated with the Group's business,
as described in the Corporate Governance Report.
Members of management involved in the ERM process are required to use a clearly defined common
method to measure and assess specific risk events in terms of Impact, Probability of occurrence and
adequacy of the existing Level of Risk Management, meaning:
economic-financial impact
on expected EBITDA or cash flow, net of any insurance cover and
countermeasures in place and/or qualitative type of impact on reputation and/or efficiency and/or
business continuity, measured using a scale that goes from
negligible
(1) to
critical
(4);
probability
that a particular event may occur within the specific planning period, measured using a
scale that goes from
remote
(1) to
high
(4);
level of control,
meaning the maturity and efficiency of existing risk management systems and
processes, measured using a scale that goes from
adequate
(green) to
inadequate
(red).