Risk Officer is responsible for mapping the main corporate risks as well as reporting the mitigation actions that the business takes to manage the risk (Enterprise Risk Management). In 2017, the Risk Officer function considered it necessary to integrate the company risk model (Fincantieri Risk Universe) with additional risks concerning the company’s social responsibility following a structured process specifically centred on sustainability.
Our Risk Universe has been defined as part of the “ERM project” which provided the Company with an Enterprise level process for detecting, evaluating and monitoring the main corporate risks, in compliance with the requirements for listed companies as per the Corporate Governance Code for the Italian Stock Market.
The process is divided into parts, starting with risk (and opportunity) mapping in terms of sustainability and climate change, using specific tools to identify the main risks by business area. The objective is to provide a vision of the set of pervasive and evolving risks and the interconnections that may pose a threat to the creation of value and achievement of the Company’s objectives in a context similar to that of Fincantieri.
10 sustainability risks, identified from the analysis, were added to the risk map and included in the specific Corporate Social Responsibility (CSR) category.
Risk of not achieving an excellent sustainability rating with specialized rating companies and analysts, or of a negative impact on reputation following a poor sustainability rating.
Risk of a damage to the Company brand that exposes it to loss of clients, profits and the competitive advantage gained on the market.
Risk of not adopting Public Relations strategies on the sustainability issues or transmission of inconsistent Company messages regarding enviromental, social and governance initiatives. Risk of not using the lever of sustainability to build and broaden relations with stakeholders. This category includes the risk that relationships with local, national and international counterparties (local cities and authorithies/associations, legal and government authorities, industrial associations, etc.) are inefficient or ineffective, infuencing the Company's ability to compete.
Risk that the Governance Model is not adequately communicated to all levels of the Company, creating ineffective communication regarding sustainability issues among the stakeholders, Board of Directors, and company management, incorrect delegation of powers, and inappropriate decisions on sustainability. This category also includes the risk of lack of implementation of monitoring programs for activities related to sustainability or the risk of inadequate preventive or investigative checks and controls relative to sustainability performance.
Risk of lack of integration or poor integration in company processes and activities of the sustainability principles (including ethics) defined in the Sustainability Governance Model. This category includes the risk relating to the absence or inadequacy of a monitoring and control process for environmental and social issues, as well as inadequate assignment of resources for this purpose.
Risk of the abscence or inadequacy of training programmes with consequent lack of skills in relation to sustainability issues. This category also includes the risk that individual performance objectives are not alignes with or specific enough to guide conduct to support the sustainability strategy, and/or there are no adequate indices to measure sustainability performance.
Risk that the Company, withing its strategy of sustainable growth, does not implement processes aimed at valuing human capital, guaranteeing respect for diversity and equal opportunity, protecting human rights, and ensuring the health and safety of the workers.
Risk that the Company invests in and builds products and/or uses materials incompatible with environmental protection.
Risk that due diligence on potential suppliers is not conducted adequately and of lack of monitoring of respect for environmental and social regulations in contracts concluded, with consequent execution of activities not in line with the sustainability principles (correct use of natural resources, protection of individual rights, etc.).
Risk that the Company adopts inadequate measures for incorporating sustainability principles in its evaluation of environmental issues and performs activities not in line with sustainability principles. This categoru also covers lack of activation of controls aimed at preventing environmental damage or lack of/inadequate evaluation and implementation of programmes for the recovery of biodiversity following environmental damage.
Company bodies are provided information through reports, including a specific report on CSR risks for the Sustainability Committee, with the objective of facilitating its function of providing guidance to the Company.