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The identification, analysis, measurement and assessment
activities result in an analysis of key risks that are quantified,
classified and listed in order of priority. The Board of Directors
uses this analysis to determine if the nature and level of the
key risks are consistent with the Group’s strategic objectives
and propensity to accept risk. The Board also works with
Senior Management to identify those risks for which it is
necessary to develop, implement and monitor additional or
strengthened strategies for their management or mitigation,
with respect to those already in place.
An Internal Risk Management Committee (comprising senior
managers) ensures, via the Chief Risk Officer, that the ERM
process remains dynamic to reflect changes in the business,
requirements and events affecting the Group over time, and
is updated periodically to take account of any new situations
or risk events that may arise or be identified in the future. In
this context, the Internal Audit Manager is responsible for the
flow of information to the Board of Directors regarding the
adequacy of existing processes.
The Strategic Risks identified include specific environmental
risks associated with compliance with current regulations
or the issue of additional environment-related instructions
that apply to the Group or our products. These risks are
managed and mitigated via constant improvements to
products and installations, and the careful management
of production processes, as well as via the arrangement
of insurance policies in line with sector practices and the
provision of specific training organised by the HSE function.
In addition, the Group has adopted internal management
systems designed to guarantee rigorous compliance with the
regulations in accordance with best practices, that are subject
to both internal and external monitoring. See the chapter
on environmental responsibility for more information about
environmental matters.
INTERNAL AUDIT AND INTERNAL CONTROL
The Internal Audit Department prepares an annual audit plan
using a risk assessment approach. Risk factors are analysed
and revised every year to ensure that the audit plan properly
covers the risks to which the Group is exposed.
The Internal Audit Manager attends the meetings of the Risk
Management and Internal Control Committee, reporting on
matters identified by the audit work and the improvements
agreed. The status of the audit plan is also reported, along
with any proposals to amend the original audit plan and the
implementation status of previously-agreed improvement
work.
The Prysmian Group adopts a series of administrative and
accounting procedures to ensure the reliability of the system
of internal controls over financial disclosures. The Company
uses policies, procedures and operating instructions to ensure
an effective flow of information from affiliates.
The Company has adopted a centrally-coordinated system
of assessment and a certification process that ensures the
adequacy and effectiveness of the internal control system,
which includes checks on the financial reporting process.
