Saipem operates within a framework of transparency and fairness and adopts a series of measures to encourage behaviour that is consistent with these principles. This means that full disclosure is expected of potential suppliers. Indeed in an effort to minimise the risks involved in working with third parties, qualification and selection processes are in place to verify and assess their technical capacity, reliability, ethics and economic and financial position.
In accordance with the guidelines set forth in Saipem Management System Guidelines (MSGs), the Company has implemented a counterparty risk assessment measure at the qualification stage for prospective or current suppliers. Counterparty risk assessment applies in the qualification process of critical and strategic goods, consultants, and professional service providers. It also applies in the screening of potential subcontractors included in a commercial proposal, suppliers with an estimated initial purchase of more than €500,000 and those selected by means of additional analyses, regardless of the class of goods.
Supplier counterparty risk assessment involves analysis of the economic and financial aspects, the technical and organisational capacity and consistency, ownership structure, country of registration of the Company, and any illicit activities on the part of the leading exponents.
The results of the counterparty risk assessment can impact the qualification process and/or contractual relationship with the supplier and comprise the risk of exclusion.