In July 2009, the Board of Directors examined and approved a new model to monitor and manage the risks which are liable to prejudice the achievement of Pirelli's strategic objectives, also in line with international best practices and with the suggestions which emerged from the self-evaluation process referred to the 2008 financial year1.
1This approach is based on the COSO Enterprise Risk Management.
Enterprise Risk Management is a top - down process, led by Senior Management and Board, which is responsible for defining and approving strategic objectives and risks.
Give strong committment and
defines mission and objectives
Adopts the methodology for identification and frisk measurement. Select main risk areas related to Group Key Value Driver.
Coordinates the assessment process
Identify risk events related to main risk areas
Analyze and evaluate risk events and risk management
system already in place.
Propose mitigation plans
Analyze and propose
risk mitigation action
Guarantees ongoing monitoring of the Group's risk exposure and implementation of risk mitigation plans
Analyses main risks, approves risk
management strategy and mitigation
plans (Annual Risk Management Plan
implementation of risk policies
risk exposure and
relevant risk strategy;
Monitor risk mitigation
Risk management Committee
Staff/business Unit functions
(*) Committee for Internal Audit, Risks and Corporate Governance
(**) Operating Units