Internal Control and Risks Committee

The Internal Control and Risks Committee ensures that the evaluations and decisions by the Board of Directors regarding the internal control system and risk management procedures are supported by adequate investigations.

In particular, the Internal Control and Risks Committee has the duties specified in the Code of Self-Regulation and consists of the following non-executive directors:

How we manage risks

Identification

• □ Risk Management function
• □ Internal Audit function
• □ Director responsible for the internal control and risk management system
• □ Managers responsible for operational functions

Evaluation and quantification

• □ Risk Management function
• □ Managers responsible for operational functions
• □ Control and Risk Committee

Monitoring

• □ Risk Management function
• □ Director responsible for the internal control and risk management system

Mitigation actions

• □ Managers responsible for operational functions

Reporting

• □ Control and Risk Committee
• □ Director responsible for the internal control and risk management system
• □ Board of Directors

Control and Risk Committee

The Control and Risk Committee is an advisory body that supports the Board of Directors in the evaluation, guidance and adequacy of the internal control and risk management system. For this purpose, the Committee:

• □ Supports the Board of Directors in the definition of guidelines for the internal control and risk management system.
• □ Expresses opinions on specific aspects relating to the identification of the main corporate risks.
• □ Examines the work plans of the control functions as well as the periodic reports, drawing up any comments and proposals to the Board of Directors in this regard and expresses an opinion on the adequacy of the Company.
• □ Carries out coordination and connection activities between the various control functions.
• □ Examines the periodic reports of the control functions which are of particular relevance in terms of the risks of typical activities of the Company and its normal operations.
• □ Can ask the Heads of the Control Functions to carry out audits and analyses on specific areas and/or topics.

Risk Management Function

In carrying out its activities, the Risk Management Function:

• □ Supports the Board of Directors in preparing and updating the risk management policy and in identifying the risk limits.
• □ Develops the methods for measuring the risks to which the Company is exposed and submits them to the Board of Directors.
• □ Verifies the application of the measures adopted to remedy the shortcomings identified in the risk management system.
• □ Checks that the risk management policy and the limits defined by the Board of Directors are complied with.
• □ Examines the investment/divestment transactions.