2012 Sustainability Report
42
| prysmian group | 2012 Sustainability Report
Risk factors
In the ordinary course of business, the Prysmian Group is
exposed to a number of financial and non-financial risk factors
that, if they arise, could have a potentially significant impact
on its economic and financial position. The Group has always
sought to maximise shareholder value by taking all necessary
measures to prevent or mitigate the risks inherent in the
Group's activities. For this reason, specific procedures are
adopted to manage those risk factors that could influence the
results of the business.
In view of the growing complexity of activities, the constantly
changing legislative and regulatory environment and, not
least, the persistent instability of the economy and the
financial markets, during 2012 the Board of Directors decided
to further increase the attention paid by the Group to the
management of risks. Consistent with the "2011 Code of Self-
Regulation for Listed Companies" (Code of Self-Regulation)
and international best practice, the Prysmian Group has begun
implementing a dynamic Enterprise Risk Management system
(ERM), designed to identify, measure, analyse and assess
risk situations and events that might affect achievement of
the Group's strategic objectives and priorities. This system,
managed in a structured and systematic manner, will help
the Board of Directors and management to determine, in an
informed manner, the most effective approach to take in order
to mitigate the impact of such risks and, therefore, allow the
strategic objectives to be achieved.
The ERM system will become an integral part of the risk
management and internal control system, which is key to
ensuring the effectiveness of the Group's system of corporate
governance. The organisational, management and control
model is specifically designed to prevent commitment of the
offences envisaged in Decree 231/01, as well as to provide
direct support for the effective application of specific risk
management procedures. The Company constantly updates
its Organisational Model in the light of regulatory changes
and the latest legal doctrine, jurisprudence and Confindustria
guidelines.
The Prysmian Group adopts and will continue to adopt a global
approach to its exposure to risks, whether external (market
and context risks) or internal (strategic, operational, financial
and legal risks).
Risks relating to changes in the regulatory framework,
especially environmental risks deriving from the issue of new
requirements applicable to the Group or its products, and
risks associated with product liability, are managed ex ante
by constantly improving the Group's products and production
facilities, as well as via the careful management of production
processes. Insurance cover is also arranged in line with sector
practices. In particular, in order to better understand and
effectively control environmental risks, the Prysmian Group
has developed a centralised system designed to:
• identify the most significant environmental issues
relating to current operations;
• identify and assess the potential environmental impact of
all operating conditions, including emergencies;
• analyse the environmental and economic risks associated
with significant capital investment;
• define improvement objectives and/or risk mitigation
plans both at Group level and for each individual country
and business sector;
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ECONOMIC AND FINANCIAL RESPONSIBILITY
