Risk Management Framework and Governance

Over time, the FS Italiane Group has set in place a number of units that support the Management in the definition and implementation of appropriate systems for managing and monitoring the main risks and controls (Risk Management, the Financial Reporting Officer, the Anti-Corruption Unit, Compliance and Data Protection).

Managing uncertainty through Risk Management creates value, as it supports the pursuit of corporate objectives by improving decision-making and facilitating the allocation of capital and resources, protecting assets and the corporate image, whilst optimising operational activities.

FS Group's Risk Management activities - which form an integral part of the Internal Control and Risk Management System (SCIGR) - are carried out in accordance with the rules and methods set out in the specific Framework. This is inspired by the Corporate Governance Code and national and international best practices, including UNI ISO 31000:2018 “Risk Management - Principles and Guidelines” and “COSO Enterprise Risk Management Framework - Integrating with Strategy and Performance”.

FS's Risk Management organisational structure, within the Security & Risk unit, ensures the direction and coordination of the related activities carried out by Group companies. In addition, it defines strategies and policies, monitors them and their implementation, and reports to corporate governance and control bodies and to internal stakeholders, with particular reference to the Control, Risk and Sustainability Committee.

Corporate Risk Management organisational structures implement the strategies, guidelines and policies defined by the Holding Company, and ensure control over the risks of the company they belong to. The structures of the Hub Lead Company coordinate and monitor the implementation of the Framework within the reference sector (or business unit).

The risk approach adopted provides for risk analyses to be conducted by the corporate Risk Management function, together with the relevant process managers, in a differentiated manner, based on the characteristics of the activity being assessed:

  • enterprise risk management, covering all business management aspects;
  • strategic risk management, concerning strategic planning and operational programming;
  • international & project risk management, relating to project and capital allocation initiatives, within the Country and abroad.

Scenario

The FS Group operates in an environment characterised by elements of transformation and uncertainty, mainly due to a generalize variability:

  • fluctuations in economic and financial trends;
  • geopolitical instability and the outbreak of conflicts;
  • varying performance levels of the infrastructure network in different areas of the Country;
  • discontinuity of price for certain commodities, and energy in particular;
  • changes in customer habits;
  • suppliers' reliability;
  • digital transformation;
  • energy transition;
  • variability of the reference regulatory framework;
  • climate change and land fragility;
  • occurrence of unlawful acts and corruption.

In this complex scenario, the FS Group presents itself as a strategic company for the economic and social development of the Country, to which it contributes through investment programmes and interventions aimed at improving efficiency and strengthening the mobility system.

Leading the way is the green & digital logic, focused on identifying risks and opportunities that may arise in the different business areas the Group is active in.