Enterprise Risk Management (ERM) is one of the key aspects of the Corporate Governance system and involves all organizational levels with different roles and responsibilities. The aim of ERM is to:

  • increase the awareness of business risks by identifying, measuring and monitoring risks;
  • improve the sustainability of business performance through risk prioritization and mitigation strategies;
  • ensure transparency and strengthen the company’s reputation by spreading the culture of risk, monitoring and compliance.

Risk Assessment is an essential element of the ERM Framework and contributes to defining business strategies by identifying and managing potential risk events that are likely to affect the actual achievement of business goals and results.

Risk Assessment also includes the preparation of action plans whose implementation is subject to ongoing monitoring and quarterly reporting. Once the risks are identified, they are assessed on the basis of the potential impact should the event occur and of the likelihood that the event will occur. Risk assessment involves taking into account the consequences of risk events both in terms of inherent risk (prior to control) and residual risk (after control). Risk assessment is graded as Low, Medium and High and is applied both to inherent and residual risk.

In accordance with the European standard ISO 9001:2005, the Ansaldo STS Enterprise Risk Management model will be updated in order to face the opportunities “that can derive from a favorable situation to the achievement of an expected result, for example circumstances which allow the company to attract customers, to develop new products and services, to reduce waste or improve productivity”. The opportunities will be determined by considering as a reference the company’s strategic plan and the sustainability report.

PRODUCT DEVELOPMENT AND TECHNICAL SOLUTIONS

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Implementation of the product roadmap
  • Introduction of a new product or technical solution
  • Competitiveness and performance of the technical solutions.
  • Economic value creation
  • Innovation
  • Customer Satisfaction

CONTRACT NEGOTIATION AND MANAGEMENT

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Contractual and financial terms
  • Contract complexity (Turnkey, Project Financing)
  • Negotiation of passive and active contractual terms
  • Specific Occupational Health, Safety and
  • Environmental regulation in new countries.
  • Economic value creation
  • Stakeholder Engagement

SUBCONTRACTORS

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Local or new subcontractors selection
  • Procurement process
  • Suppliers technical and financial qualification
  • EHS performance requirements.
  • Economic value creation
  • Customer Satisfaction
  • QSE Management
  • Sustainable Supply Chain Management

STRATEGY

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Competition at a global level
  • Standardizatione
  • Definition and implementation of the strategy
  • Resource optimization
  • Economic value creation
  • Innovation
  • Quality of Governance
  • Environmental impact of products

LEGAL AND GOVERNANCE

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Conformity and compliance able to satisfy different local levels of regulatory requirements
  • Governance
  • Communication
  • Economic value creation
  • Anticorruption
  • Quality of Governance
  • Human rights protection

RESOURCES

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Availability of necessary competences to manage the business with flexibility
  • Background, knowledge and skills
  • Resources empowerment
  • Economic value creation
  • Training and development
  • Corporate welfare
  • Stakeholder engagement

BUSINESS CONTINUITY

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Safety of workers
  • Safety and EHS standards
  • Physical safety of the IT systems
  • Protection of corporate assets
  • Economic value creation
  • Safety of workers
  • QSE management systems
  • Social risk management

REQUIREMENT AND CONFIGURATION MANAGEMENT

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Requirements, interface and scope of work requirements
  • Compliance of requirements
  • Configuration management of consolidated products
  • Technical standards evolution
  • System integration
  • Economic value creation
  • Customer Satisfaction
  • Innovation

PROJECT BUDGET

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Planning, management and control of time, costs and quality
  • Scope of work
  • Priority management
  • Estimation of external costs and requests for changes
  • Economic value creation
  • Customer Satisfaction
  • Training and development

MACROECONOMIC AND GEOPOLITICAL SCENARIO

KEY RISKAMATERIAL ASPECTS FOR SUSTAINABILITY
  • Economic and Geopolitical instability resulting from external factors
  • Economic value creation

OBSOLESCENCE

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Control of available products and components, both produced and acquired, to promptly detect obsolescence
  • Economic value creation
  • Innovation
  • Customer Satisfaction
  • Supply chain sustainability

SAFETY

KEY RISKMATERIAL ASPECTS FOR SUSTAINABILITY
  • Preventive management of the safety systems.
  • Economic value creation
  • QSE management systems
  • Customer Satisfaction