SABAF - ANNUAL REPORT 2014
RISK MANAGEMENT
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Risk Management Framework In conducting its business, Sabaf defines strategic and operational objectives, and identifies, assesses and manages the risks that could prevent these from being met In recent years Sabaf has progressively explored the concepts of risk assessment and risk management, in order to develop a structured and regular process of risk identification, assessment and management, defined and formalised in Guidelines contained in the Company’s Corporate Governance Manual.
Business Analysis Analysis of Organisational structure Risk Catalogue
Operational Guideline:
Risk
Risk Map
“Process of periodically identifying
Management
and measuring Sabaf Group risks”
Framework
Assessment Scale for Risks
The guidelines define the roles and responsibilities for risk assessment and risk management processes, indicating the parties to be involved, process frequency and assessment scales.
ASSESSMENT SCALE
Each risk is subject to an assessment which breaks down into the following variables: • probability of occurrence over a three-year time frame; • estimation of the greatest impacts in terms of the financial position, damage to persons and damage to image, over the time frame subject to assessment; • level of risk management and control .
1
2
3
4
approx 1% Ebit
approx 1%-2.5% Ebit
approx 2.5% -10% Ebit
approx 10% Ebit
Limited impact on health
General impact on health
Serious risks to health
Irreversible effects
Effects at local level
Effects at regional level
Effects at national level
Effects at international level
Once every 3 years or more
Once every 2 years
Once every year
More than once a year
Qualitative assessment
Very unlikely/Remote
Fairly unlikely
Likely
Very likely
LEVEL OF RISK MANAGEMENT
Excellent
Satisfactory (with limited room for improvement)
To improve
Inadequate
IMPACT
Financial impact Damage to persons
PROBABILITY
Damage to image Frequency of occurrence