Approach


PHILOSOPHY: TURN RISK INTO A CHOICE

Mission

Pillars

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.

It is worthwhile noting that the Enterprise Risk Management model goes beyond the strategic, operative planning and analysis of investment projects through a continuous monitoring and management of operational risks.



The high volatility of the principal 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.


Last Revised: 15 Nov 2013