Risk Management

Financial risk management is an integral part of the management of the Group's operations. Risk management is carried out centrally using policies defined by the General Finance and Strategic Planning Department.

Such policies define the categories of risk and specify the procedures and operating limits for each type of transaction and/or instrument.

In accordance with these policies, the Group uses derivative contracts in relation to underlying financial assets or liabilities or future transactions.

Financial risk management is centralized at the Sector Treasury Units which have the task of evaluating the risks and putting into place the relative hedges under the coordination of Group Treasury.

The Sector Treasury Units act directly in the market on behalf of the Operating Units and, where it cannot operate directly because of external restrictions, coordinates with the Local Treasury Unit.