Sustainability Report FY 2021

46 We preserve value through regeneration We grow by sharing Methodological notes Annex We respect our history through sustainable innovation We manage as if we were guardians The continuous and fast-changing nature of the context in which the companies operate requires a proactive approach to risk management to prevent, mitigate and manage internal and external impact that could derive from incorrect assessment. Risk management, including environmental and social risk, is now necessary at a strategic and decision-making level as well as at an operational level. Utmost attention is also given to informing all company roles about risk, with the aim of creating a holistic risk culture at every level. For risk management, the Executive Committee (ref. section “Governance System of the Ruffino Group”) is tasked with monitoring the evolution and management of risks based on the me- asures implemented by the company. Risk analysis is conducted using the Risk Scorecard, aimed at identifying the following for every area of the bu- siness: possible risks, the probability that the risk will occur, the possible impact on the company system and subsequent actions to be implemented to mitigate risk. The afore-stated steps enable the cre- ation of the Ruffino Enterprise Risk Inventory, which is updated when ne- eded to integrate the evolution of the internal and external Group scenarios. Risk management