Managerial Committees

The Group has set up specific managerial committees composed of the Group’s top and senior management with the task of assisting the Board of Directors and the Executive Directors to define the guidelines for the business activities and to implement the policies established by the Board.

In particular, the following principal Managerial Committees have been established.

Management Committee

The Management Committee includes all the Managers of the Business Units, Regions and Departments who report directly to the Chairman and the CEO.

The Management Committee is chaired by the Chairman of the Board of Directors and CEO and has the task of supporting the latter in preparing the Group’s strategic guidelines to be submitted to the Board’s examination and to execute and implement the decisions taken by the Board of Directors in this regard, and to monitor their implementation.

The Management Committee meets once a month to verify constantly the Group’s economic performance; the development of the programmes, plans and initiatives common to the Group and the Business Units or Regions which have joint importance.

Risk Management Committees

The review of the risk model has led to identifying three risk macro families, namely: (i) external environment risks, (ii) strategic risks and (iii) operating risks which guide the risk management objectives, the control model and the governance bodies (in this regard, the reader is referred to the section: “risk governance system”).

Two Risk Management Committees were set up:

  • the Strategic Risks Committee with responsibility for risks related to strategic business choices or due to the external environment in which the Group operates;
  • the Operating Risks Committee that focuses on preventing and managing risks related specifically to the organisational structure, to the Group’s processes and systems.

Both Committees have the task (i) of adopting and promoting a systematic and structured process to identify and measure risks; (ii) to examine information on internal and external, existing and future risks to which the Group is exposed; (iii) to propose strategies to respond to the risk based on the overall and precise exposure to the different risk categories; (iv) to propose the implementation of a risk policy to assure that the risk is reduced to “acceptable” levels; (v) to monitor the implementation of the defined risk response strategies and compliance with the risk policies adopted.

Sustainability Steering Committee

The Sustainability Steering Committee is chaired by the Chairman of the Board of Directors and is responsible for policy-making and supervising the sustainability development by formulating the sustainability plans fully integrated with the Group’s industrial business plan and based on the international policies and principles applicable to this area.

The Sustainability Steering Committee includes all the functions of the “value chain” represented by the respective Group Director: Sustainability and Risk Governance, Institutional Affairs, Corporate Governance, Human Resources and Organisation, Administration and control, Product, Process, Procurement, Research & Development, Investor Relations, Environment, Health and Safety, Marketing, Media Relations – as well as the business managers.

The reader is referred to the Sustainability Report (Volume 3 of the document “Financial Report as of 31/12/2013”) for a complete description of Pirelli’s sustainable performance in 2013 and the respective long-term targets.