ERM Unit was established to provide Enel top management with a global vision on relevant risks at Group Level, through qualitative and quantitative analysis directly carried out by ERM team and through evidences produced either by Holding Risk Management or by other Business Lines/Group companies.
Currently ERM activity is centralized at Holding level and is responsible for defining the methodological approach and for entire ERM process in Enel Group. Local ERM units, reporting to the Holding ERM, have been established within Countries/Business Lines, to support ERM activities.
ERM analysis is carried out annually on the entire Group perimeter, and is aimed to assess, analize, quantify, report and monitor main risks potentially impacting the Business Plan targets.
In detail, main operational steps of ERM analysis may be summarized as follows:
- Identify main Business Plan goals and related KPIs,
- Identification of risks and related risk drivers (exogenous and endogenous),
- Modelling of risk factors by deterministic models (scenario analysis) or stochastic models,
- Measuring the impact on Strategic Plan goals,
- Identification and reporting of relevant risks at Group / Business Line / Country level.
Monitoring of key mitigation actions and of risk profile evolution.