Due to the nature of its generation, distribution, market and upstream gas activities, Enel Group is exposed to the risk of asset damage and business interruption due to systems failures, accidents or other extraordinary events, such as natural disasters. In order to measure these risks, Enel has created an integrated system that identifies, measures and manages industrial risks from each single plant, network or project to Group portfolio level.
This system allows the Group to compare the efficacy of mitigation plans in terms of cost/risk reduction - such as planned or predictive maintenance and plants, networks and projects modifications - giving the Group a detailed reporting on industrial risks that it is exposed to. Through the industrial risk assessment of strategic investments and projects, the system supports Enel's top management to devise and implement the best possible strategies. The industrial risk management process works over five phases:
- Risk identification and assessment
- Risk measurement
- Risk reporting
- Risk mitigation and transfer
- Continuous monitoring
Industrial risk management also provides a contingency framework to guarantee the resilience of the business in the case of natural disasters or other catastrophes, respond to crisis situations, safeguard the interests of business lines and stakeholders and maintain the Group's reputation, brand value and competitive advantage.