Pirelli’s Enterprise Risk Management model forms part of three key phases in the decision making process:
- strategic planning (medium/long term);
- operational planning (annual and quarterly);
- new investment projects.
Pirelli’s Risk Model was evaluated as the best-inclass in 2011 in the “Autoparts and Tyres” sector by the SAM Group in an assessment for the Dow Jones Indexes in 2011.
|Risk analysis in strategic planning||Risk analysis in the annual and quarterly operational planning||Risk analysis in new investment projects|
The high volatility of the main economic and financial variables (price of raw materials, exchange rates, trend of reference markets, pricing trend) has entailed supplementing the “traditional” reporting tools with a quarterly measurement of the volatility of the expected profit in relation to the risk events or opportunities which may produce a change compared to the targets or the best renewed forecasts.
The profit@risk review is subject to a quarterly report to the Top Management and supports the Top Management in the timely identification of the market trends and a possible “realignment” of the strategic actions.
The review is submitted to the Committee for Internal Control and Corporate Governance during the year.