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 analysis of operating risks forms an integral part of the Group's internal control system; ad hoc methods are developed for each risk area with the aim of identifying the vulnerabilities of the control systems and the possible impacts for the Group.
At present the analysis has concerned business interruption risks, risks associated with information systems, risks relating to the supply chain and corporate criminal liability risks. The areas of vulnerability which emerged are subject to a continuous follow-up activity performed by the Operating Risks Committee.