The Risk Model
At Salcef, we believe that an effective Risk Management represents a key factor to ensure a long-lasting Group Value.
As part of its Corporate Governance system, Salcef has developed and adopted a Risk Management Model as early as 2019, inspired by the main methodological frameworks on the matter (COSO ERM Framework, ISO31000) and national and international best practices. The Model is aimed at supporting the management in making decisions that are fit for the Company’s risk profile and consistent with corporate objectives, and at nurturing a culture of risk assessment, management and mitigation.
Below are the objectives of the Salcef Group‘s ERM:
- ensure an ever-increasing awareness when making strategic decisions, by scrupulously assessing current and prospective risks;
- promote the dissemination of risk management in business processes in order to ensure consistency in management and control methodologies and tools;
- develop a common language when dealing with risks and disseminate an appropriate risk management culture, consistent with the Group’s Mission, Vision and Core Value;
- provide a harmonised approach and uniform tools for risk identification and assessment;
- ensure coordination between the Risk Owners and the Actors involved in the ERM process;
- improve the use and allocation of resources;
- contribute to the development of the Group’s ability to adapt to change by fostering the adjustment of corporate strategies.
Risk Governance
The Salcef Group’s Risk Governance gives the Board of Directors a leading role in defining the nature and level of risk acceptable to pursue long-term strategic objectives.
The Chief Executive Officer enforces the Board‘s guidelines by ensuring the identification, assessment, management and monitoring of the main risks, through the ERM process, for an integrated Risk Governance Policy.
The Audit and Risk Committee advises on the main business risks and expresses opinions on the main findings of the ERM process.
The Salcef Group’s Risk Governance System is characterised by a structured approach, which provides for a governance based on three levels of control and adjusted to the relevant best practices.
Enterprise Risk Management (ERM)
In line with the principles set out in the COSO ERM Framework and ISO31000, Salcef Group continuously and dynamically manages the IRM process, according to a top-down approach.
The ERM process involves three stages:
- Risk identification, analysis and assessment: aimed at ensuring a consistent and integrated analysis of the risk profile associated with corporate objectives, through the identification, assessment and prioritisation of the main corporate risks;
- Risk monitoring: aimed at providing dynamic information on trends in the main risks, identifying any critical issues and the best remediation actions at an early stage, as well as identifying any emerging risks;
- Reporting: aimed at ensuring adequate and timely information flows to the Administrative and Control Bodies and Management, contributing to the best possible risk management and informed decision-making.
Main Risks
Below are the main corporate risks relating to the activities carried out by the holding company, Salcef Group:
| RISK AREA | RISK CATEGORY |
|---|---|
| COMPLIANCE RISKS | Economic and financial reporting and NFD Legislative Decree 231/2001 and/or ISO37001 |
| STRATEGIC RISKS | Human Capital Government System Strategic planning Business Model |
| FINANCIAL RISKS | Credit risk |
Below are the main corporate risks relating to the activities carried out by Salcef Group’s subsidiaries:
| RISK AREA | RISK CATEGORY |
|---|---|
| COMPLIANCE RISKS | Legislative Decree 231/2001 and/or ISO37001 Safety at work |
| OPERATIONAL RISKS | Business Continuity Activities, processes and Procedures Asset Protection |
| STRATEGIC RISKS | Competitive environment Strategic planning Technological development Country Risk |
| FINANCIAL RISKS | Credit risk |