The aim of the Strategic Risk Management is to measure the risks related to the achievement of the Budget and Industrial Plan, both at Divisions/Companies level and Group level, as well as to provide the evaluation of the risks related to the investments with strategic relevance, in order to support the approval process providing risk/return evaluation for the single investment and assessing their impact on the Group portfolio.

An integrated model has been developed for both these activities in order to ensure coherence between the evaluation of the risks related to the achieving of the Industrial Plan targets and those related to strategic investments. The developed tools guarantee a coherent generation of future possible scenarios of exogenous variables, taking into account the relations between these variables and measuring the impact that each of them could have on the Group results.

Among the exogenous variables the main commodity prices are considered, being the driver of the evolution of fuel market prices (fuel oil, coal and gas), together with environmental variables, such as the availability of natural resources, and financial and economic variables that could have an impact on the energy markets where Enel operates directly but also on those markets which represent the driver in certain areas of interest (i.e. Germany for Central European market). Among the latter variables there are GDP growth rates, to which is typically related the power demand, inflation rates, exchange rates and interest rates, having a relevant impact on the debt evolution. At last, regulatory variables are considered as well, representing a relevant component, for example, in determining the renewal of distribution tariffs.

Changes in the main figures of the profit and loss and cash flow statement are monitored, in order to evaluate the variability of the economic margins, cash flows, debt evolution and the most common financial ratios, in an integrated framework at Business/Market level. It is then possible to evaluate the financial sustainability of the actions foreseen in the Industrial Plan and the risk adjusted performance of the strategic investments, providing to the Top Management metrics and analyses for supporting the decisions related to strategic planning, risk appetite and capital allocation.