Main financial risks

Financial and top risks

Financial and top risks

Main risk and processing actions

Eni's top risk portfolio consists of 20 risks which are classified into:

Strategic risks
External risks
Operational risks

Eni's top risks with respect to corporate objectives are shown below, with the specific actions indicated.

Strategic risk

Main risk events

Commodity Price Scenario, overwiew of risks deriving from unfavourable commodities price fluctuation (Brent, natural gas and other commodities) compared to planning assumptions.


Treatment measures

  • Focus on portfolio resilience and flexibility by monitoring traditional businesses cash generation, new businesses growth, portfolio and capital budgeting optimization;

  • diversification of gas/LNG supply portfolio of contracts leveraging on the development of upstream and GGP integrated initiatives to exploit value from equity gas and portfolio optimization actions;
  • active strategy of portfolio hedging in relation to market conditions;  
  • optimization of plants’ set-up in the tradition businesses;  

  • enhancement of biorefinery capacity through the conversion of traditional refineries and selective partnership in projects in differentiated geographical areas;

  • chemical portfolio focused on higher value-added products and markets; development of renewable/bio Chemical and recycle;  

  • feedstock flexibility also by integrating the agribusiness and diversifying products through the SAF segment development;  

  • maximization of value from power services and initiatives to promote the decarbonization of power generation;  

  • maximization of synergies between renewable capacity development and power customer portfolio (integrated energy management and hedging with customer portfolio) and further revenues securitization by participating to auctions and PPA signing.

Main risk events

Fall in demand/competitive environment, relating to a market demand and supply imbalance or an increase in competitiveness leading to: (i) sale volumes reduction, (ii) increased difficulties in in preserving the customer base/developing growth initiatives, (iii) trigger adverse trends of finished products’ prices, (iv) fall in demand.


Treatment measures

  • Diversification of gas/LNG supply portfolio of contracts leveraging on the development of upstream and GGP integrated initiatives to exploit value from equity gas and portfolio optimization actions;  

  • active strategy of portfolio hedging in relation to market conditions and geopolitical scenario evolution;  

  • growth in the sustainable mobility business and selective development of the service stations network;  

  • chemical portfolio differentiation towards higher value added products and development of the downstream chain towards compounding;  

  • development of renewable and recycling chemical;  

  • organic growth of the retail gas and power customers with progressive integration with renewable energy generation capacity and the development of distributed generation and energy efficiency services, as well as e-mobility;  

  • strenghtening the market position in the renewables markets, mainly in the Countries were a retail activity is carried, by developing the pipeline of acquired projects, with specific focus on Spain and Italy.

Main risk events
Climate change
, referred to the possibility of changes in the scenario/weather conditions determining risks related to the energy transition (legislative, market, technological and reputational risks) and physical risk for Eni business in the short, medium and long term.


Treatment measures

  • Structured governance with a key rule of the Board of Directors in managing the main issues related to the climate change, and specific committees supporting the Board; • Strategic Plan foreseeing operational actions for each business to sustain the industrial transformation and to reach targets in the short, medium and long term;  

  • remuneration policy with shaort and medium terms incentive plans including targets related to the “climate strategy” in line with the strategic plan;  

  • resilience through the flexibility of the Strategy, portfolio diversification by developing low carbon businesses and products, as well as assessment of the portfolio resilience through stress test based on low carbon scenarios;  

  • three-year technological development plan, or anticipated in case of material technology gaps, and active collaboration on Domestic and international innovation ecosystems;

  • transparency in climate disclosure, proactive dialogue with stakeholders and support to international initiatives and monitoring of legislative and legal trends (see also investigations and hse procedures risks);  

  • risk management process to identify and analyse assets exposed to potential prospective changes of natural events which could affect the operability and integrity of Eni’s assets.

External risk

Main risk events

Commercial credit risk, riferring to the possible non-fulfilment of obligations assumed by a counterparty, with impacts on the economic/financial situation and the achievement of the company’s targets.


Treatment measures

  • Centralised credit model and operative coordination in multi-business customer management;  

  • risk-mitigating management actions: guarantees, factoring, insurance coverage;  

  • systematic monitoring of entrusted counterparties’ risk indicators and timely alerting mechanisms.

Main risk events
Biological-risk related to the spread of pandemics and epidemics potentially impacting people, health systems and businesses.


Treatment measures

  • Eni Crisis Unit’s constant guidance and monitoring to align, coordinate and identify response actions; 

  • preparation and implementation of a plan to react to health emergencies (Medical Emergency Response Plan - MERP) to be adopted by all Eni subsidiaries and employers. The plan is also defined in order to identify a business continuity plan;  

  • information for staff and training campaigns;  

  • technical-scientific guidance activities of the staff units to define prevention and treatment measures to be declined and implemented at the business level.

Main risk events
, impact of geopolitical issues on strategic actions and business operations.


Treatment measures

  • Institutional activities with relevant national and international counterparties to overcome crisis situations;

  • continuos environmental monitoring, mainly focused on critical political/institutional developments and regulatory issues which can potentially affect the businesses;  

  • enhancement of Eni’s presence leveraging on sustainability’s initiatives, with particular focus on the economic and social issues of Countries where the Company operates.

Main risk events
Global security risk
, relating to actions or fraudulent events which may negatively affect people and material and intangible assets.  

Political and social instability, referring both to political and social instability, and to criminal/bunkering events within the Country towards Eni and its subsidiaries, with potential consequences in terms of lower production, delays in projects, potential damage to people and assets.  

Credit & Financing Risk, related to the financial stress of the partners and delays in credit proceeds and recovery of the incurred costs.


Treatment measures

  • Portfolio geographical diversification;  

  • engagement in national and international initiatives for the implementation of collaboration plans and response to potential threats involving companies;  

  • mitigation treatments for security risks through specific projects and programs referring to some most sensitive areas/sites;  

  • presence of a security risk management system supported by analysis of Country and site specific preventive measures and implementation of emergency plans aimed at maximum safety of people and the management of activities and assets;

  • signing of Country-specific repayment plans leveraging on proven contractual and/or financial instruments;  

  • request for sovereign guarantees and letters of credit to protect credit positions.

Main risk events
Energy sector regulation, relating to impacts on operations and competitiveness of businesses associated with the evolution of the energy sector regulation.


Treatment measures

  • Monitoring of legislative and regulatory evolution; advocacy within the institutional processes of definition of new directives or regulations targeted to decarbonisation and energy security;  

  • definition of strategic and operational actions in line with regulatory developments:

    - geographical diversification of bio capacity, feedstock flexibilization and expansion of product portfolio (agro-biofeedstock development, biojet production);

    - development of chemical from renewable sources, and development of the advanced mechanical recycling and technologies for chemical recycling.

Main risk events

Relationships with local stakeholders of the energy industry.


Treatment measures

  • Integration of targets and sustainability projects (i.e. Community Investment) within the Strategic Plan and the management incentive program;

  • continuous dialogue with stakeholders to disclose the Eni’s sustainable approach, also through social and local development projects and local content valorization;  

  • collaboration agreements with national and international organizations towards Public Private Partnership (FAO, UNDP, UNESCO, UNIDO);  

  • respect and promotion of Human Rights through the implementation of the Human Rights Management Model, impact analysis and the integration of Human Rights perspective in the business processes.

Main risk events
, relating to the occurrence of possible delays or failure to issue authorizations, renewals or permits by the Public Administration with impacts on project schedule and costs as well as implications for social, environmental, image and reputation issues.


Treatment measures

  • Constant dialogue with institutions and participation to parliamentary hearings;  

  • continuous involvement of authorities and stakeholders on project objectives and progress from the early stages;

  • transfer and sharing of knowhow with the bodies involved, also through greater involvement of technical bodies;

  • supervision and monitoring of sectoral authorization procedures;  

  • visits/inspections of sites by representatives of institutions;  

  • Eni’s central platform to manage Permitting and Environmental Compliance process of the operating sites.

Operational risk

Main risk events
Risks relating to blow-out and other accidents affecting assets in the upstream segment, refineries and Chemical plants, or that could happen during transportation by sea and land of hydrocarbons and derivatives (i.e. fires, explosions, etc.), damaging people and assets, and effecting the company profitability and reputation.


Treatment measures

  • Insurance coverage;  

  • careful prevention action (application of new technologies) and real time monitoring for wells;

  • proactive monitoring of incidents through the weak signals identification in the Process Safety area and completion of the actions resulting from Audits and Risk Assessments relating to Process Safety issues;  

  • technological and operational improvements and continuous implementation of the Asset Integrity Management system to prevent accidents together with the increase in plant reliability;

  • vetting: management and coordination of relevant activities to asses, inspect and select ships, assignment of a rating for operators;

  • standard contract specifications in the maritime transport;

  • Contract Risk Management (Pre/Post award);  

  • continuos training activities.

Main risk events
Cyber Security & Industrial espionage 
referring to cyber attacks aimed at compromising information (ICT) and industrial (ICS) systems, as well as the subtraction of Eni’s sensitive data.


Treatment measures

  • Centralized governance model of Cyber Security, with units dedicated to cyber intelligence and prevention, monitoring and management of cyber attacks;  

  • Cyber Security Operation infrastructures and services strengthening;  

  • enhancement of safeguards at subsidiaries outside Italy and industrial sites;  

  • increased detection capacity by implementing specific IoC (Compromise Indicators) from institutional sources and Cyber Threat Intelligence providers;  

  • promotion of the corporate culture in the Cyber Security also through targeted initiatives (phishing simulation);  

  • stronger monitoring of security events.

Main risk events
Investigations and proceedings
relating to climate change, environmental, health and safety issues.


Treatment measures

  • Legal defense in judicial and non-judicial venues;  

  • organizational structures engaged in the legal assistance and supervision of national and international institutional relations on HSE and climate change issues;  

  • continuous monitoring of regulatory developments and constant assessment of the adequacy of existing monitoring and control models;  

  • strengthened process of assigning and managing assignments to external professionals through new methods to ensure transparency and traceability;  

  • focused communication programs.

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