The FS Italiane Group has, over time, structured various controls that support management in defining and implementing adequate management and monitoring systems for the main risks and controls (Risk Management, the Appointed Director, the Anti-Bribery&Corruption Unit, Compliance and Data Protection). In this scenario, the Group Chief Risk Officer acts as general coordinator and manager of the corporate risk management process.

The Risk Management Organisational Structure ensures the design, implementation and governance of the integrated Enterprise Risk Management model and the integrated monitoring process for the set of corporate risks. Furthermore, the Structure combines strategies, policies, processes and operating mechanisms regarding the identification, acquisition, management, mitigation, monitoring and reporting of the main risks to which the company is exposed; and defines the risk portfolio of the Parent Company while coordinating the various Group risk management units.

The definition process of the Risk Management Framework of the FS Italiane Group was concluded in 2018. This Framework defines areas, responsibilities, methodologies and tools for an effective process of identification, assessment, measurement, management and monitoring of current and possible future business risks. The adoption of a single Framework at Group level allows the:

  • definition of the scope of application of the risk management process, identifying the areas of action and the decision-making processes in which it is applied;
  • identification of tools and models for the assessment and management of unequivocal and consistent risks for the Group, defining the responsibilities for their management and use between the Parent Company and the Group Companies, based on the type of activity and the field of action in which these activities are carried out;
  • ensuring or methods of interpretation, analysis and representation of the results of common risk management activities;
  • promotion of a more widespread corporate culture with greater focus on risk management;
  • fostering the growth of the business family, through the diffusion of a common "language" and the adoption of paths aimed at guaranteeing the development of the skills and professionalism of the resources involved in the risk management process.

Risk factors

The FS Italiane Group is exposed to the following risks, in relation to the use of financial instruments:

  • credit risk;
  • liquidity risk;
  • market risk, and specifically interest and exchange rate risk.

Management of these risks focuses on the volatility of the financial markets and seeks to minimise potential undesired effects on the Group's financial and economic performance.

The FS Italiane Group is exposed to the following other main risk areas, in relation to its activities:

  • business risks;
  • operating risks;
  • legal and contractual risks;
  • supply risks;
  • project risks;
  • IT risks;
  • environmental risks.

Further information on the Group's risk management, policies, goals and assessment methods is available in the Group's Consolidated Financial Statements