Risks and Uncertainties

The current macroeconomic situation, financial market volatility, complex management processes and continuous legislative and regulatory evolution force successful businesses to renew their ability to protect and maximise tangible and intangible sources of value that characterise their own business model. For these reasons, Pirelli adopts a pro-active risk management system. It uses a systematic and organised process of identifying, analysing and assessing risk-prone areas that could compromise the attainment of strategic objectives, provides the Board of Directors and management with decision-making tools so that they can anticipate and manage the effects of these risks and, more in general, govern them, guided by the awareness that the assumption of risk is a fundamental part of business management.

Reference is made to the Corporate Governance Report for details on the risk management system.

The Pirelli Risk Model systematically assesses two categories of risks: strategic risks and cross business risks.