The TIM Group has adopted a Risk Management Model, which is constantly evolving and is aligned with international regulations and standards to allow risks to be identified and managed in a homogeneous way within the Group companies.
The Risk Management process is designed to identify potential events that may influence the business activity, in order to manage risk within acceptable limits and provide a reasonable guarantee that company objectives will be achieved.
The Risk Management Model adopted by the TIM Group
• classifies risks based on their impact into Strategic (deriving from the evolution of the factors underlying the main assumptions used for the development of the Strategic Plan) and Operational (deriving from the evolution of risk factors, both endogenous and exogenous, that may compromise the achievement of company objectives)
• assesses risks not only individually but also from a risk portfolio perspective (correlation analysis);
• identifies and updates the overall set of risks to which the Group is exposed by means of:
- the analysis of the Business Plan
- the monitoring of the reference context (e.g., macroeconomic and regulatory)
- specific analyses of the risks to which company assets may be exposed
- monitoring and cyclical analysis with the Risk Owners to intercept possible variations and/or new risk scenarios.
The process is managed by the Risk Management Steering Committee, which is chaired and coordinated by the Chief Financial Officer. The Steering Committee ensures the governance of the Group’s risk management, aimed at guaranteeing the operational continuity of the company’s business, monitoring the effectiveness of countermeasures taken.
The approach adopted is dynamic and, therefore, provides for a revision of the risk scenarios not only after periodic assessments, but also when significant changes occur in the context inside or outside the Group, as well as the identification and/or occurrence of new risk situations. It also cyclical depending on the stages of the strategic planning process.
The management process includes the following stages: