Enterprise Risk Management

Bylaws and Corporate Governance Report

An integrated and multifunctional approach

As part of our Internal Control and Risk Management System, Rai Way has implemented an Enterprise Risk Management system (ERM) in order to promote a risk management culture, both in terms of threat and opportunity. This is carried out following an integrated and inter-functional approach.

The ERM system aims primarily to identify, evaluate, and prioritise company risks, developing relevant response actions and supporting the management in the development of previsions and strategic decisions.

Our risk governance model is based upon an approach which:

  • is business-oriented, as it supplies relevant information on risk factors, uncertainties, and opportunities, with a view to supporting conscious decisions taken to define performance objectives and monitoring strategies;
  • is enterprise-wide, covering all types of risk and opportunity that could be potentially significant to Rai Way;
  • is value-driven, focusing on the risks and opportunities with the greatest impact on strategic objectives and on drivers of company value.

Within the company’s management framework, an area of Enterprise Risk Management (ERM) has been assigned to the Chief Financial Officer in which they may apply a multi-disciplinary value to the management of risks to the company.

Risk Management Process

Rai Way’s risk management process includes:

  • the identification and evaluation of risks from the risk owner, in collaboration with the function of the ERM and other governing bodies within the ICRMS;
  • the choice of relevant strategies and mitigating actions.

The risks identified are inserted into the company’s risk catalogue and monitored over time to reveal any potential modifications in its context factors which could determine variation in terms of its probability of occurrence and/or impact.

The main risks the company finds itself facing include, but are not limited to, strategic risks in relation to factors that could influence the company’s objectives, outlined in our industrial plan, as well as operative risks relating to production and management factors which may impact on the correct operation of company assets.

Over the past few years, Rai Way has also focused its efforts on the consideration of all risks related to ESG, not least the specific risk deriving from climate change. The economic repercussions of this risk on the company have been evaluated in detail.