94
| 2012 aNNual rEpOrT prySmiaN grOup
The Prysmian Group is exposed in the normal conduct of
its business to a number of financial and non-financial risk
factors which, if they should arise, could also have a material
impact on its results of operations and statement of financial
position. The Group has always worked to maximise value for
its shareholders by putting in place all necessary measures to
prevent or mitigate the risks inherent in the Group’s business
and this is why it has adopted specific procedures to manage
the risk factors that might influence its business results.
In light of the increasing complexity of its activities, the
constant evolution in legislation and regulations, and the
continued instability of the economy and financial markets,
the Board of Directors decided in the course of 2012 to devote
even greater attention to risk management. In accordance
with the “Italian Stock Exchange Self-Regulatory Code for
Listed Companies - Ed. 2011” (Self-Regulatory Code) and
international best practices, the Prysmian Group has started
to develop a dynamic Enterprise Risk Management (ERM)
system intended to identify, measure, analyse and evaluate
risk situations or events that could affect the achievement
of the Group’s strategic objectives and priorities. The system
is managed in a structured and systematic way and will
support the Board of Directors and management in knowingly
evaluating the most effective approach to adopt in order
to mitigate the impact of such risks and thus enable the
achievement of strategic objectives.
The ERM system will become an integral part of the essential
system of internal control and risk management to ensure the
effectiveness of the Group’s corporate governance structure.
This structure is based in turn on the recommendations and
rules contained in the “Self-Regulatory Code”, which the
Company has adopted; the “Corporate Governance” section of
this report provides information about the structure adopted
and related responsibilities and also outlines the contents
of the documents that comprise the Organisational Model,
adopted by the Group on 27 August 2008. This model of
organisation, management and control is specifically designed
to prevent the commission of the crimes envisaged by
Legislative Decree 231/01 and to directly support the effective
application of specific risk management procedures. Prysmian
constantly updates its Organisational Model to reflect changes
RISK FACTORS
Work started to develop a dynamic
Enterprise Risk Management (ERM) system
intended to identify, measure, analyse and
evaluate situations or events that could
impact the achievement of the Group’s
strategic objectives and priorities.
CONSOlidaTEd FiNaNCial STaTEmENTS >
DIRECTORS’ REPORT
