Edison has developed an integrated corporate risk management model that draws inspiration from the international principles of Enterprise Risk Management (ERM), in particular the Committee of Sponsoring Organisations (COSO) methodological framework, thus defining a systematic approach for identifying the company's priority risks, assessing potential negative effects in advance and adopting mitigating actions.
The risk mapping and risk scoring methodology adopted by Edison assigns a relevance index to risk based on an assessment of overall impact, probability of occurrence and level of control, and Edison's Risk Model, on which this methodology is based, encompasses, in an integrated framework, the different types of risk characterising the business in which the Group operates.
Under the coordination of the Risk Office, the heads of the various corporate areas identify and assess the risks for which they are responsible, also with respect to the applicable ESG profile, through a Risk Self-Assessment process, providing an initial indication of the mitigation actions associated with these risks.
The results of the ERM and the Risk Self-Assessment process are submitted to the Control, Risk and Sustainability Committee and the Board of Directors at predetermined intervals, and are used by the Internal Audit Department as input for the preparation of specific risk-based audit plans.
The updated risk mapping is normally submitted to the Board of Directors at the meeting in which it approves the budget for the following year.
During the year 2023, the Company's Board of Directors adopted a new Energy Risk Policy and a new Exchange Rate Policy.
For more information on the most important risks concerning Edison and its subsidiaries, please refer to the Report on Operations, the Notes to the Consolidated Financial Statements, and the Non-Financial Disclosure.
