A company’s ability to manage corporate risks effectively serves to maintain its value in the interest of long-term sustainability. It is for this reason that Brembo has defined a precise Internal Control and Risk Management System (ICRMS), which forms an integral part of the Group’s Corporate Governance system. This system has been defined in accordance with best national and international practices and includes specific rules, procedures and organisational responsibilities for identifying and managing corporate risks correctly.
The Internal Control and Risk Management System reflects Brembo’s Code of Ethics as it was set up to share ethical business principles and values, and seeks to establish over time a fully-fledged culture of corporate controls aimed at ensuring legality, correctness and transparency in all company operations, involving the whole organisation in developing and applying methods to identify, measure, manage and monitor risks.
A risk management process founded on a Risk Model consisting of the following risk families:
• external risks: connected to the occurrence of external events that are difficult (or partly difficult) to predict or can be influenced by Brembo;
• strategic risks: connected to events that could influence strategic policies or the organisational and business model adopted by Brembo;
• operating risks: connected to inefficient and ineffective processes, with negative consequences for the creation of Brembo value;
• financial risks: connected to ineffective and inefficient management of events arising in key financial markets.
Risk management is an integral part of decision-making and business management processes, including strategic and operational planning, the management of new business initiatives and the associated change, as well as the preparation of adequate reports for stakeholders.