Risk Management


Risk Management

A company’s ability to manage corporate risks effectively serves to protect its value over time and foster its long-term sustainability. 

Based on the national and international best practices, Brembo has accordingly established and implemented an Internal Control and Risk Management System (ICRMS), which is an integral part of the Group Corporate Governance and brings together specific rules, procedures and organisational responsibilities for the proper identification and management of corporate risks. 

The Internal Control and Risk Management System (ICRMS) represents the set of organisational structures, rules and procedures that allows the main business risks within the Group to be identified, measured, managed and monitored, while helping the Company to be run in a manner that is sound, correct and in line with the objectives defined by the Board of Directors, favouring the adoption of informed decisions consistent with the risk profile, as well as dissemination of a proper understanding of risks, lawfulness and corporate values. 

The Board of Directors is tasked with defining the general guidelines of the ICRMS, so that the main risks pertaining to Brembo S.p.A. and Group subsidiaries are properly identified, as well as adequately measured, managed and monitored. It shall also set criteria to ensure that such risks are compatible with sound and proper management of the Company. 

The ICRMS is subject to regular examination and controls, taking account of developments in the Company's operations and reference context, as well as national and international best practices. 

The Internal Audit GCF evaluates the effectiveness and efficiency of the overall Internal Control and Risk Management System on a regular basis and reports the results to the Executive Chairman, the Chief Executive Officer, the Board of Statutory Auditors, the Audit, Risk & Sustainability Committee and the Supervisory Committee of Brembo S.p.A. with reference to specific risks connected with compliance with Legislative Decree No. 231/2001. At least on an annual basis, it also reports to the Board of Directors. 

The Executive Director in charge of the Internal Control and Risk Management System fully enforces the risk management guidelines based on principles of prevention, cost effectiveness and continuous improvement, as approved by the Board of Directors 

The Chief Executive Officer, in addition to coordinating the risk mitigation actions implemented by the competent management team, has a key role in the management of potential corporate “crisis” events, including for example the global pandemic and most recently the Israeli-Palestinian conflict and the war in Ukraine, in relation to which he directly takes on the direction of the Crisis Management Committee, in accordance with the provisions of the company Guidelines for crisis management. 

With reference to risk management, Brembo has defined the following guidelines and procedures

- A Risk Management Policy based on ISO 31000 standard, which establishes the Group’s general direction and policies relating to risks, including those relating to sustainability, their management and harmonisation of processes. 

- A Risk Management Procedure, designed to provide Guidelines in terms of methodology and operating guidance to support the risk management process 

- A risk management process founded on a Risk Model consists of the following risk families: 

      - external risks 

      - strategic risks 

      - operating risks 

      - financial risks 

- Crisis Event Management Guidelines 

- During 2023, Brembo continued along its development path designed to reinforce its Sustainability Model and comply with the non-financial statutory disclosure requirements, introduced with Legislative Decree No. 254/2016

Brembo has updated the risk assessment in the Sustainability area, using the assessment criteria aligned with the Group’s risk management methodology. Set out below are the main risks identified by Brembo, as well as the mitigation measures put in place to date and the future objectives for managing them: 

     - Environmental risks 

     - Risks relating to climate change 

     - Risks relating to supply chain management and protection of human rights 

     - Risks relating to human resources 

     - Risks connected to corruption and regulatory compliance 

     - Social risks