We have Enterprise Risk Management (ERM) processes and systems to detect, evaluate and monitor the main company risks (Risk Universe), in compliance with the requirements for listed companies as per the Corporate Governance Code. In Fincantieri the Risk Office coordinates and supports management with regard to risk assessment tools and methodologies, and aggregates and shows the results of their mitigation.

 

During 2020, the Risk Officer - in collaboration with the Sustainability function - supplemented the identified business risks and the specific sustainability risks in order to contribute to the Company’s sustainable success by monitoring all corporate risks. The analysis conducted on the resulting Risk Universe allowed risks with an impact on the sustainability of the business to be identified and highlighted, taking ESG (Environmental, Social and Governance) risk up to 16; their management methods are described in the chapters of this Sustainability Report.

 

The reporting required for the information to be provided to the company bodies envisages a specific report on ESG risks for the Sustainability Committee, with the aim of facilitating its function of providing guidance to the Company.

SUSTAINABILITY RISKS: GOVERNANCE

NEW TECHNOLOGIES

Risk that the Company does not monitor and/or seize technological evolutions that could improve the quality of products and processes, as well as rationalize costs and offer products at more competitive prices

REPUTATION RISK

Risk of damage to the Company brand that exposes it to loss of clients, profits and the competitive advantage gained on the market

INVESTOR & PUBLIC RELATIONS

Risk of not adopting Public Relations strategies on the sustainability issues or transmission of inconsistent Company messages regarding environmental, 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 authorities/associations, legal and government authorities, industrial associations, etc.) are inefficient or ineffective, influencing the Company's ability to compete

SUSTAINABILITY RISKS: GOVERNANCE

SUSTAINABLE SUPPLY CHAIN

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.)

DATA AND INFORMATION PROTECTION

Risk related to an inadequate information management, in terms of sensitive data of the Company and of the involved counterparties. Furthermore, this category includes the risk connected to ineffective protective measures, which can cause the risk of access and use of confidential data by unauthorized individual/entities outside the Company

SUSTAINABILITY RISKS: GOVERNANCE

RATING AGENCIES AND SUSTAINABILITY INDICES

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

GOVERNANCE, STRATEGY AND SUSTAINABILITY COMPLIANCE

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

SUSTAINABILITY RISKS: GOVERNANCE

IMPLEMENTATION OF THE MISSION AND VALUES IN TERMS OF SUSTAINABILITY

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

SUSTAINABILITY RISKS: SOCIAL

CUSTOMER SATISFACTION

Risk that the Company does not pay attention to its customers' needs and to the improvement of the offered service, with consequent inability to satisfy or exceed their expectations

HUMAN RESOURCES MANAGEMENT

Risk related to the failure or to the inadequate management and development of competences within the Company according to a continuous improvement model, to the maximum expression of individual capacities and to the identification of the proper coverage of corporate roles. This risk can arise, for example, from the lack or from the discontinuity of investment in staff training, with the consequent impossibility to learn new competences or improve the ones acquired. This category includes the risk of hiring not adequate staff caused by errors in identifying current and future needs or using the correct recruiting channels

SUSTAINABILITY RISKS: SOCIAL

LABOUR RELATIONS

Risk arising from the hostility and/or rift of relationships among Fincantieri (employer), the personnel and the trade union representation, such as to proclaim strike, interrupting the operating activities

TRAINING, INCENTIVES AND ASSESSMENT OF THE SUSTAINABILITY PERFORMANCE

Risk of the absence or inadequacy of training programs with consequent lack of skills in relation to sustainability issues. This category also includes the risk that individual performance objectives are not aligned with or specific enough to guide conduct to support the sustainability strategy, and/or there are no adequate indices to measure sustainability performance

SUSTAINABILITY RISKS: SOCIAL

PEOPLE

Risk that the Company, within 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

SUSTAINABILITY RISKS: ENVIRONMENTAL

NATURAL DISASTERS AND CATASTROPHES

Risk that a natural disaster or catastrophic events (such as epidemic, earthquakes, etc.) might prevent the Company from running its operating activities, offering its products/services or recovering operating costs

ECOLOGICALLY COMPATIBLE PRODUCT DEVELOPMENT

Risk that the Company invests in and builds products and/or uses materials incompatible with environmental protection

ENVIRONMENT

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 category 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

Related Topics

Sustainability governance

Our governance model

Materiality matrix

Our commitments

Sustainability Plan

Stakeholders

We support Global Compact

Memberships and participation in associations

Our security system

Our performance

Reporting

Business Ethics

Internal Control and Risk Management