Eni has developed and adopted a Model for Integrated Risk Management (IRM) to ensure that the company takes risk-informed decisions. The model also seeks to increase awareness at all company levels that appropriate risk assessment and management can affect the company's value and ability to deliver on targets.
Risk Governance and guidelines for Risk management
Our Risk Governance system gives a central role to the Board of Directors, which defines the nature and level of risk compatible with strategic targets, including in the evaluation process all those risks that could be significant for business sustainability in the medium-long term. The Board of Directors, with the support of the Control and Risk Committee, determines the guidelines for risk management, so as to ensure that Eni's main risks are properly identified, assessed, managed and monitored.
A model that aims to strengthen company awareness
Risks are potential events that can affect Eni's activities and whose occurrence could affect the achievement of the company's core objectives. We identify, monitor and manage business risks, including market, operational and strategic risks. In addition, the issue of climate change could lead to changes in scenario and climate conditions, which could generate physical risks and risks related to the energy transition (regulatory, market, technological and reputational risks) affecting Eni's businesses in the short, medium and long term.
The Integrated Risk Management process takes a top-down and risk-based approach, starting from the definition of Eni's Strategic Plan. It ensures that major risks are identified, assessed, managed and monitored while taking into account the individual operations, risk profiles and risk management systems of each business unit, to create a wholly integrated risk management process.
Risk profile of the company
The IRM supports management in the decision-making process by strengthening awareness of the risk profile.
We also manage the risks associated with the cyclical nature of the Oil & Gas sector.