Risk Management

Risk Management

The risk management system implemented by Astaldi Group is based on a concept of risk taken as an integral part of the generation of value and is deeply rooted in the Group’s decision-making process. Our successful risk management is aimed at exploiting business opportunities by encouraging future growth and, at the same time, safeguarding the value creating at date.

Taking measured risks, ensuring that the Company’s risk profile is consistent with its strategic objectives, is a core Management responsibility. With a view to achieving this, in compliance with the provisions contained in the Italian Stock Exchange’s Code of Conduct (Art. 7 – Internal Audit System and Risk Management) safeguarding shareholders, the Corporate Risk Management Department was established in 2010 and it is responsible for assisting the management in the decision-making process.

The ERM model

In light of the financial markets’ increased focus on optimising risk management trends, as well as our own commitment, we have implemented the Enterprise Risk Management (ERM) Model. This model aims to strengthen and standardise risk culture within the company and create integrated analysis, assessment and risk management methods at different Group levels (enterprise, country, contract). This will minimize the different risk profiles that can be singled out within the Group’s complete business cycle.

The ERM model takes the form of a system which creates value and competitive advantage by analyzing risk factors and assessing their impact on Group performance, allowing for informed undertaking of risks and mitigation of any negative consequences. The Board of Directors of 9 March 2016, has approved the first Risk Appetite Statement which sets out three fundamental components: top risk categories, risk appetite and risk tolerance.. This document also sets out five key categories for the main obstacles to achieving targets set out in the Business Plan. These targets are recognized by the Group’s management as typical and recurrent for its reference business segments. Each category has been defined a risk appetite, namely the level of risk the company is willing to undertake when performing its business. Risk tolerance is defined as the maximum amount of risk that the organization is technically able to assume when overcoming the risk appetite.

The defined statement provides the organization with a rigorous framework for setting strategic and budget objectives, selecting new projects and assessing entry into new markets.


Over the Top risk categories

Financial Structure-related risks

This category is specific to risks linked to the possibility that a business is unable to meet its financial obligations due to contractual undertakings general financial liabilities, as well as default of specific covenants, i.e. binding clauses for the Group which are dependent on specific sources of financing, upon penalty of withdrawal of the loan or renegotiation at less favorable conditions The Group also acknowledges the potential consequences of currency volatility, given the extremely unpredictable nature of the market it operates in. The Group therefore has adopted control measures and suitable hedging operations (natural and non-natural) in order to mitigate the risk of possible exchange rate and interest rate fluctuation, which could be detrimental to achieving international growth targets. 

Context-related risks

The main reason for internationalization which has always been a hallmark of the Group’s commercial development policies, is to assess the risks arising from economic, political and social events (hence not dependent on Astaldi) which are able to damage earnings or the value of the Group’s assets. The Group has set tolerance levels for so-called Country Risk, set down in the Risk Appetite Statement, which take into account the aforementioned international diversification. 

Partnership-related risks

The increasing complexity of works performed and growing opportunities for sharing project risks have contributed to the decision to adopt project management models involving partnerships with other operators in the reference segment. In compliance with this approach and in keeping with the Risk Appetite Statement which set tolerance levels and appetite regarding partner management-related risks, the Group adopts a preliminary partners selection process performed on the basis of business criteria (technical capacity, experience in reference business segment, qualifications held), income statement criteria (recent turnover and margins) and financial criteria (levels of debt, financial liquidity). The Group also takes into account information obtained via legal checks (absence of pending lawsuits, disqualifications for the legal representative and investigations underway regarding crimes against the P.A. both in Italy and abroad), checking of ethics/honorability and checking of governance models adopted. 

Human resources-related risks

The Group faces increasingly complex works, both in terms of volume, type and the diversity of the political and economic contexts of our partners. Therefore, it is necessary to depend on resources, especially for key positions which, in addition to guaranteeing availability within a suitable timeframe, also ensure high levels of technical and specialist skills and know-how. 

Sustainability and QHSE-related risks

A clear CSR (Corporate Social Responsibility) policy can have a positive impact on the investment choices of institutional investors, with a resulting increase in the value generated by Group activities. However, CSR targets which fail to be met, such as accidents and/or breach of HSE regulations can expose the Group to risk as regards reputation. Moreover, some markets are excluded to companies with a bad track record as regards QHSE issues (QHSE Compliance). In order to control these types of risks, the Group has adopted a QHSE management system, certified by independent third-parties. 

Constant monitoring, with the involvement of management, is carried out on the 5 top risk categories. This helps the Group, among other things, to verify and ensure the alignment of top risks at the levels set by the Risk Appetite Statement. Furthermore it gives management the opportunity to revise the top risks and their tolerance thresholds, and to consider changes in business conditions and goals.



The attentive and consolidated risk management policies adopted by the Group have become increasingly important and a genuine asset shared within the company, granting flexibility and the ability to promptly react to the different contexts facing the Group.

The presence of a structured RM system can enhance company reputation, as it demonstrates to shareholders, stakeholders and the market in general, that the organization has good corporate governance, a proactive risk management approach and that its key business drivers have been working with risk appetite in mind.


Last updated: Oct 23 2018