risk management

Risk management and the main risks to which ENAV is exposed

The ENAV Group has implemented an Enterprise Risk Management System to monitor and manage through which risks are monitored and managed in terms of the threats and opportunities they represent, adopting a risk classification model structured into four areas (Strategic, Financial, Operations and Compliance) and twenty-two “sub-areas” of a financial and non-financial nature.

Periodic risk assessment activities are conducted to evaluate the exposure to risk both in qualitative and quantitative terms, weighting the associated remedial actions on the basis of specific predefined propensity thresholds (risk appetite).

Enterprise Risk Management operates in compliance with the guidelines of the Internal Control and Risk Management System (ICRMS) and in support of the Control and Risks and Related Parties Committee.

The various organizational, operational and regulatory systems are accompanied by a constant commitment to disseminating a culture of risk and risk-based management at the various levels of the company.

The main risks to which the ENAV Group is exposed are:

Operations Risks

The Group is constantly committed to guaranteeing the highest levels of continuity and performance for its services, systematically managing safety (safety of air navigation services) and security (information security and physical security), ensuring constant and innovative technological and infrastructural development.

The ENAV Group also focuses great attention on environmental impact issues and compliance with the relevant legislation, applying the guidelines set out in the Group's Environmental Policy. In particular, ENAV plays an active role in reducing CO2 emissions by carriers through the Flight Efficiency Plan (FEP) and the Free Route project, with a view to countering climate change in the long term as well.

Compliance Risks

Today’s national and international regulatory system is a highly complex environment in constant evolution, requiring investments in people and processes in order to stay on top of the issues that impact us.

ENAV constantly monitors regulatory developments, pursuing the objective of promptly and effectively meeting the compliance requirements established in the reference regulatory framework and in industry best practice, with the related adaptation of responsibilities, processes, organizational systems, governance and control systems to those developments.

Strategic Risks

Our medium and long-term strategies - from infrastructural digitalization to the upgrading of operating platforms and the development of drone services - will enable ENAV to preserve its positioning in the air traffic control sector, maintaining high levels of service performance and quality. Human rights and diversity issues also fall within this area and are effectively managed and monitored on the basis of specific Company policies and the Code of Ethics of the ENAV Group. Great attention is paid to compliance with social standards in the supply chain and in commercial operations, in consideration of the international activities in which the Group is engaged.

Financial Risks

The ENAV Group, which also operates in the international market, constantly minimizes its exposure to all risks associated with interest rates, exchange rates, liquidity and receivables through specific company policies. In addition, in our core business area, international agreements envisage protection mechanisms in the event of deviations in the volume of air traffic from official forecasts. More details on financial risk management are available in the Annual Financial Report.