The Group's Risk Management Model, which was first formalised by Group Resolution no. 169/AD dated 21 January 2014, sets out the phases, method and roles for assessing and managing corporate risk.
The Risk Management process involves:
- mapping processes and their purposes;
- identifying and assessing risks and the relative checks;
- proposing improvements to risk mitigation.
The method used to perform Risk Management is the Control Risk Self-Assessment (CRSA), which is characterised by the active involvement of process owners.
Process owners are responsible for:
- identifying events linked to risk areas and classifying them using the glossary;
- checking that procedures, instructions and any other aspect of internal organisation are appropriate for preventing risks and limiting their impact;
- if the measures are found to be inadequate, proposing and drafting effective actions to correct and improve risk mitigation.
The process owners are supported by management and the Risk Officer. Under Group Resolution no. 178/AD dated 06 October 2014, the Model required Risk Officers to be appointed in all main Group companies, reporting directly to the CEO.
In 2015, the Group Model was strengthened by setting up the Risk Management department, reporting directly to the FS Italiane CEO. The department's mission is to ensure the implementation of an integrated Enterprise Risk Management model to help optimise controls and improve corporate and Group performance.
In 2016, the Risk Management department continued to implement the model, and their work was considerably boosted by the arrival of a new Manager in the Parent company, specifically appointed to re-engineer the area in light of the new goals of the 2017-2026 Industrial Plan.
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.