The Financial Risk Management department in the management of financial risks:

  • Analyses, assesses and monitors the Group Enel's exposures, both at the consolidated level and at Entity level;
  • Defines the methodologies and tools for the measurements of financial risks in order to support each Company to identify their exposures;
  • Coordinates the risk assessment process at Group level for the risk component of its competence.

The objectives of financial risk monitoring are as follows:

  • Monitoring interest rate risk has a strategic aimed to achieve the optimal level of coverage defined, to stabilize financial charges to reduce the cost of borrowing;
  • Monitoring exchange rate risk aims verifying of the derivatives hedging strategy, to contain the variability of economic results deriving from exchange rate variations;
  • Monitoring liquidity risk, in order to maintain an adequate level of liquidity for the Group, for minimizing the opportunity cost, and to balance the debt structure;
  • Monitoring credit riskonly for the financial counterparties, in order to minimise the risk profile with selecting counterparties with high credit profile, entering into appropriate contractual agreements (ISDA, CSA, etc.) and through diversification of counterparties so as to avoid exposures being too heavily concentrated.

Periodically the Financial Risk Management department produces a reporting package both entity level and Group level for the exposures monitored with relative comment notes to support the competent Units\Business Lines\Companies.

Finally the Financial Risk Management defines the guideline at Group level, shared with other Units concerned, on methods, models and parameters to be used in the assessment of financial instruments and in the calculation of the effectiveness of hedging strategies, and periodically it verifies that they are applied correctly.