The Piaggio Group’s risk model identifies CSR risks implicit in internal risks.
The Piaggio Group is engaged in an Enterprise Risk Management (ERM) project to define and gradually implement a structured and integrated system for detecting, measuring and managing company risks in line with existing best practices in the area, as defined by the Committee of Sponsoring Organizations of the Treadway Commission (CoSO) and the applicable regulatory requirements (Borsa Italian’s New Corporate Governance Code).
The Piaggio Group’s risk model identifies CSR risks implicit in internal risks, as briefly described below.
Risk connected with a worsening of how stakeholders perceive the Group and its reputation, and loyalty to it.
Risk connected with the environment and with health and safety
Risk that the Group does not guarantee a safe work environment, with potential negative impacts (for example legal proceedings brought by employees, loss of reputation, the payment of compensation). Risk connected with potential negative environmental impact that may damage property or persons and expose the Group to sanctions, costs for compensation and reputational damage.
Risk connected with the development of environmentally compatible products
Risk connected with inadequate technological investments that are functional for sustainable mobility, for creating environmentally friendly products and an adequate technological level of products to meet new mobility needs of consumers and regulatory developments.
Risk connected with the sustainable supply chain
Risk connected with the use of suppliers or subsuppliers that do not meet adequate standards of sustainability, in line with the Group’s sustainability strategy.
Risks connected with diversity
Risk arising from a failure to value diversity within the organisation and the absence of management that is heterogeneous as regards competency, experience, age brackets and gender; risk arising from discriminatory actions that may occur on the labour market due to gender, sexual orientation and other diversity aspects.
To deal with these risks, the Piaggio Group has excellent environmental, quality and safety management systems at all its production sites.
For a more detailed analysis of all the risks identified by the Piaggio Group, refer to the Report on Operations in the 2016 Consolidated Financial Statements.