Menu

Risk Management

04/16/2014 - 01:00 PM

In order to ensure a global approach to risk management, the Telecom Italia Group has adopted an Enterprise Risk Management (ERM) process, inspired by ISO 31000. This is a corporate risk governance tool used to identify, assess and manage risks.

Control Room Security

Telecom Italia's risk is understood to be an event that might generate a departure from the goals of the three-year plan.

In order to ensure a global approach to risk management, the Telecom Italia Group has adopted an Enterprise Risk Management (ERM) process.

At the heart of the system is the Group Risk Management Committee which is chaired and coordinated by the “Administration, Finance and Control” Function Manager.

The Committee meets every three months (or when specifically required) and is intended to govern the Group risk management process, which is designed to guarantee the operational continuity of the company's business. The adopted process provides for:

  • the definition and updating of the policies on the efficient operation of the risks management process;
  • the prior analysis of the context within and outside the Group;
  • the assessment of the risk profile by the management, understood as a variation to the strategic objectives set out in the three-year plan;
  • risk mapping with a specific focus on the ones deemed to be most significant;
  • the assessment of the level of maturity in risk management and the establishment of inter-functional working groups defined by the Risk Management Committee for the implementation of dedicated mitigation action plans and control key risk indicators.

With a view to ensuring continuous improvement, a process was launched in 2013 to renew the ERM process, which will be operational as of 2014. Responsibility for overseeing the redesign of the new process has been assigned to a specific steering committee (known as the Enterprise Risk Management Steering Committee), chaired and coordinated by the Group CFO and reporting to the CEO.

The results of this work will allow greater awareness and protection of the business to be developed thanks to a more objective approach to risk exposure, to the connection between assessment activities and planning and capital allocation processes as well as to a timely verification of existing and/or future controls to mitigate the identified risks.