Saipem understands the central role played in decision-making processes by the identification, assessment and control of risk. On the basis of the ‘Principles of Integrated Risk Management’ approved by the Board of Directors in July 2013, Saipem therefore developed and implemented a model for the integrated management of Company risks. This is now an integral part of the Risk and Internal Control Management System.
The new model underscores the Company’s commitment to a more organic and concise vision of the risks to which it is exposed, greater consistency of methodologies and tools to support risk management, and strengthening of awareness at all levels of the positive impact that an appropriate assessment and management of risks of various types can have on the achievement of objectives and on the Company’s value.
The model contains a system of Risk Governance, which defines roles, responsibilities and information flows for the management of the main risks and describes the risk management process, in particular its guidelines for risk management, assessment and handling (how to avoid, accept, reduce and share risk), monitoring and reporting.
The risk mapping process commenced at Corporate level in 2013 and will be extended to include another 12 companies in the Saipem Group. The project has seen the realisation of ad hoc Business Cases to support risk owners in their efforts to achieve the most accurate and objective risk assessment possible of the causes of risks and their potential correlation, so as to weigh up the best risk handling strategies to implement.
In compliance with the Integrated Risk Management process, and following completion of the first cycle of risk assessment (during which the mechanisms for the functioning of the new Integrated Risk Management process were finalised), on December 23, 2013 the CEO submitted details of the main risks Saipem faces to the Board of Directors.
The main industrial risks identified concern operational HSE risks (accidents, malfunctions, breakdowns, damage to people and to the environment), country risks (political, social and economic in countries where Saipem operates or intends to invest), and specific project risks (mainly regarding onshore and offshore EPC(I) contracts, from commercial to execution phase).
The HSE risk control system encompasses management of operations that ensures maximum efficiency in the prevention, handling and control of risks and is based on periodical monitoring (quarterly, half-yearly and yearly) of HSE indicators and on a structured auditing plan for all sites.