In order to ensure a global approach to risk management, the Telecom Italia Group has adopted a process inspired by the Enterprise Risk Management (ERM) Framework([1]). This is a corporate risk governance tool used to identify, assess and manage risks.
At the heart of the system is the Group Risk Management Committee which is chaired and coordinated by the “Administration, Finance and Control” Department Manager and is made up of:
- the Managing Director Domestic or Director President TIM Brasil or Chief Executive Telecom Argentina or Vice President and Managing Director Telecom Italia Media, depending on the matters being dealt with;
- the managers of the Legal Affairs, Human Resources and Organization, Supply Chain & Real Estate, Security departments;the Group Compliance Officer;
- the manager of the Risk Management department of Administration, Finance and Control & International Development.
The manager of the Risk Management department supports the coordination of the Committee. The Managers of other departments are involved depending on the specific matters being dealt with.
The Committee meets every three months (or when specifically required) and is intended to govern the Group risk management process based on the ERM approach, which is designed to ensure the operational continuity of the company's business. This approach involves:
- an assessment of the risk profile by management, covering both business processes and strategic objectives;
- risk mapping with a specific focus on the ones deemed to be most significant;
- the establishment of inter-departmental working group defined by the Risk Management Committee for the implementation of dedicated mitigation action plans and control Key Risk Indicators.
The process is updated on an annual basis (or more frequently) at the discretion of the Risk Management Committee.
([1]) Enterprise Risk Management, 2004 by the Committee of Sponsoring Organizations of the Treadway Commission.