Risks and Uncertainties

The Board of Directors decided in 2009 to upgrade its corporate governance system by introducing a pro-active risk management system. It uses a systematic and organised process of identifying, analysing and assessing risk areas that could compromise the attainment of strategic objectives, provides the Board of Directors and top management with decision-making tools so that they can anticipate and manage the effects of these risks and, more in general, govern them, guided by the awareness that the assumption of risk is a fundamental part of business management ¹.

Pirelli risk model focuses on two major risk areas: strategic risks and cross risks.

¹Reference is made to the Corporate Governance area for details on the new risk management system.