In order to implement and monitor management processes of all financial risks, including operating and business ones, in 2009 Enel centralized all its fields of expertise and responsibilities regarding risk management in the new “Group Risk Management” Department.
According to the new structure, the Enel Group’s Chief Risk Officer is completely independent and autonomous with respect to the business areas and reports directly to the Chief Executive Officer.
Moreover, in early 2010 several integration projects were launched regarding the development, assessment, measurement, concentration and quantitative risk management, specifically focusing on commodity, financial, credit, environmental and operating risks, also including a project of Enterprise Risk Management (ERM) aimed at the integrated assessment of the Key Business Risks.
The Group Risk Management Department is divided into areas in charge of monitoring and managing the various risks that concern the Group:
- The International Risk Management establishes the structure, implements and coordinates the functions of the local Risk Management of major companies abroad, with the task of transferring and guaranteeing compliance to processes, methods and guidelines defined by other of Risk Management Units;
- The Financial and Strategic Risk Management is responsible for defining guidelines regarding financial risks at a Group level, also analysing, assessing and monitoring risks and controlling the observance of the connected operational limits;
- The Unit of Operational Risk Management is responsible for determining, measuring and monitoring all the operating risks connected with the Enel Group’s industrial processes and the assessment of connected mitigation projects;
- The Enterprise Risk Management is in charge of defining a common risk management structure, determinants and assessment criteria.
- The Commodity Risk Management is responsible for analysing, assessing and monitoring the Enel Group’s commodity risks (energy, fuels, metals, CO2 etc.), globally and for each Division/Company;
- The Insurance and Environmental Risk Management is in charge of managing the Environmental risk, specifically analysing the results of environmental risk assessment, also defining adequate mitigations strategies;
- The Credit & Counterparty Risk Management monitors credit risk;
- The Country Risk Management is aimed at defining a Country’s risk assessment model and drawing up guidelines for its management, pinpointing strategies, measures and tools for risk mitigation, providing specific studies and strategic support for activities regarding Merger & Acquisition and business development, including the definition of the “country risk” premium.
