Barilla adopts a model of Enterprise Risk Management (ERM) which requires the cooperation of all corporate units.
The objective of this model is to comprehensively map out all risks to which the company is exposed, measuring them and classifying them with standard metrics, shared with the top management, in order to prioritize risks and ensure they are managed and monitored appropriately.
The Barilla Model matches each identified risk in a given corporate area with a risk owner, who is entrusted with the supervision and management of that risk. Identified risks are included in a specific database, the Risk Register, which is regularly updated.
Based on the risks identification and classification, and on the Group's risk appetite, Barilla sets out risk mitigation and risk management plans, which are regularly monitored. This control activity enables the company to evaluate the effectiveness of its action plans and the adequacy of its mitigation plans to the mapped risks. Furthermore, in order to monitor the most critical exposures and the implementation of the mitigation measures, the updated risk profile is regularly presented to the top management.
Regarding Information Technology risks in particular, the Group is equipped for disaster recovery and, since Cyber Security is a special concern for the company, Barilla invests in specific projects to improve its IT security and carries out regular vulnerability assessment.
THE ENTERPRISE RISK MANAGEMENT PROJECT
In 2017, Barilla launched a three-year project to improve its Risk Management System, starting with a review of the model for risk governance and the risk assessment methodology.
Furthermore, risk analyses were carried out, with the participation of the company's top management, in order to identify any financial or non-financial risk that can potentially impact Barilla business.
In particular, the analyses revealed several risks connected to the Group's “Good for You, Good for the Planet” mission, in the following areas:
- risks connected to nutrition and the nutritional profile of products, mainly due to the evolution of consumer preferences and new food trends;
- risks connected to product quality and safety;
- risks in supply chain management, mainly linked to lack of quality of the raw materials or suppliers adopting non-sustainable production methods;
- environmental risks connected to climate change, which can generate negative impacts on the supply chain, including non-availability of ingredients for the Group's recipes;
- risks related to the environmental management of production, mainly related to the use of energy and water resources in Barilla plants;
- risks connected to Human Resource Management, for example regarding diversity, inclusion and equal opportunities, people's health and safety in the workplace.