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.
|Risk analysis in strategic planning||Risk analysis in the annual and quarterly operational planning||Risk analysis in new investment projects||Operative risks analysis|
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.