Internal control system

Responsibility for the internal control system lies with the Board of Directors as a whole, which establishes policies and periodically verifies its adequacy and effective functioning.
The Company's internal control system - and of the Pirelli Group in general - is set up to guarantee that correct information is provided and adequate control of all Group activities is implemented, with a special focus on areas considered potentially at risk.
The internal control system is first of all a "management" tool, in that it is useful and necessary for the Board of Directors, Executive Directors and managers in general for correctly and effectively performing the tasks assigned them.
The internal control system permits monitoring of compliance with the rules and procedures governing performance of all the Company's business activities.
Pirelli's internal control system has been developed as a direct process aimed at pursuing the values of substantial and procedural fairness, transparency and accountability, ensuring: (i) efficiency, transparency and traceability of transactions and management activities in general; (ii) reliability of accounting and management data and financial information; (iii) compliance with laws and regulations; (iv) protection of the company's integrity, also in order to prevent fraud damaging the Company and the financial markets.

The key rules underlying the Company's internal control system are:

  • (i) separation of roles in performance of the principal activities involved in individual operative processes;
  • (ii) traceability and constant visibility of decisions;
  • (iii) management of decision-making processes on the basis of objective criteria.

In its meeting on April 21, 2011, the Board of Directors of the Company - as proposed by the Director in charge of the Internal Control System, with the prior approval of the Committee for Internal Control, Risks and Corporate Governance - confirmed Maurizio Bonzi - Head of the Internal Audit Department - as Company Internal Control Officer.

The Internal Control Officer:

  • is responsible for verifying that the internal control system is adequate and fully operational and functioning;
  • is not responsible for any operational area and does not hierarchically report to any head of an operational areas, including the administration and finance area;
  • has direct access to all information necessary to perform his duties;
  • has adequate resources for performing the assigned function;
  • reports on his activities to the Internal Control, Risks and Corporate Governance Committee (to which he reports functionally) to the Board of Statutory Auditors and to the Director in charge of the Internal Control System (to whom he reports hierarchically).
Last Revised: 01 Jul 2012