Sabaf s.p.a. Annual Report 2014 - ENG - Ch 3

Page 11

SABAF - ANNUAL REPORT 2014

RISK MANAGEMENT

45

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


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