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LEGAL RISKS
Product liability
Any defects in the design and manufacture of the Prysmian
Group’s products could give rise to civil or criminal liability
in relation to customers or third parties. Therefore, the
Group, like other companies in the industry, is exposed to
the risk of legal action for product liability in the countries
where it operates. In line with the practice followed by many
industry operators, the Group has taken out insurance which
it considers provides adequate protection against the risks
arising from such liability. However, should such insurance
coverage be insufficient, the Group’s results of operations and
statement of financial position could be adversely affected.
In addition, the Group’s involvement in this kind of action and
any resulting liability could expose it to damage in reputation,
with potential additional adverse consequences for its results
of operations and statement of financial position.
Compliance risks
Compliance risk is the risk of incurring legal or administrative
sanctions, material financial losses or reputational damage as
a result of violations of laws, regulations, procedures, codes of
conduct and best practices. Since its inception, the Prysmian
Group has had an approved Code of Ethics, a document which
contains principles of ethics and guidelines for conduct to
be observed by all those engaged in activities on behalf of
Prysmian or its subsidiaries, including managers, officers,
employees, agents, representatives, contractors, suppliers
and consultants. In particular, the Code of Ethics requires full
compliance with current regulations and the avoidance of any
kind of misconduct or illegal behaviour. The Company puts
in place organisational mechanisms designed to prevent the
violation of the principles of legality, transparency, fairness
and honesty and is committed to ensuring their observance
and practical application. Although the Group is committed to
continuous compliance with the applicable regulations and to
close monitoring to check for any misconduct, it is not possible
to exclude that in the future there may be episodes of non-
compliance or violations of laws, regulations, procedures or
codes of conduct, which could result in judicial sanctions, fines
or reputational damage, even on a material scale.
Risks associated with intellectual property rights
Although the Group believes it has adopted a suitable system
for protecting its own intellectual property rights, it is not
possible to rule out that it could face difficulties in defending
such rights.
Intellectual property rights owned by third parties could hinder
or limit the Group’s ability to introduce new products to the
market. In addition, it is not possible to rule out the Group’s
possible involvement in legal actions involving intellectual
property rights, the outcome of which is often unpredictable.
Such circumstances could have an adverse impact on the
Group’s activities, results of operations and statement of
financial position.
