THE NEW MONCLER INVESTOR RELATIONS APP IS NOW AVAILABLE

INTEGRATED ENTERPRISE RISK MANAGEMENT

Moncler has adopted an integrated Enterprise Risk Management (ERM) system based on international best practices. The system involves the Group’s governance bodies, each acting within the scope of its respective competence.
In line with the field’s guidelines and best practices of reference, the main objective of ERM is to ensure the effective identification, measurement, management , and monitoring of risks.
The ERM system covers all types of risk that can potentially affect the achievement of strategic objectives, impair company assets, and/or undermine the value of the Brand. ERM is incorporated into strategic decisions and key deci- sion-making processes.
Risks may be internal or external depending on whether they are identified within or outside the Company. In particular, external risks are linked to industry and market situations, as well as to the stakeholders’ perception of how Moncler operates.
Moncler’s ERM system divides risks into four categories:
• Strategic Risk
• Business Risk
• Business Support Risk
• Compliance and Integrity Risk.
Strategic risks relate to changes in business or to inadequate responses to changes in the competitive environment. Sustainability risks fall within this risk category.
Business risks are associated with the sector of reference and company operations.
Business support risks concern the Group’s organisational structure, control processes, and IT and reporting systems.

Compliance and integrity risks are connected with breaches of internal procedures, laws, and regulations applicable to company operations at national or international level.
With regard to internal risks, the objective of the ERM system is to manage them through specific prevention and control measures incorporated into company processes, designed to eliminate the risk, minimise its likelihood of occurrence, or contain its impact in the event of occurrence.
With regard to external risks, the objective of the ERM system is to monitor them and mitigate their impact in the event of any occurrence.
For each business area in which a risk has been identified, there is a ‘risk owner’ responsible for supervising the risk itself and the effectiveness of the control system, and for implementing or improving mitigation measures.
All risks and related mitigation actions are recorded in a Risks Register, which is updated regularly (in concert with risk owners) on the basis of an annual plan approved by the Board of Directors with the support of the Control, Risks, and Sustainability Committee.
The plan is periodically updated to include any new elements of risk and/or to reflect any increases in the likelihood of occurrences or in the extent of impacts.
In 2016, a detailed analysis was conducted of the risks associated with: operations (with a focus on the supply chain); the areas of retail, wholesale, logistics, IT, and product development; and the business support processes of the administration and control, treasury, and legal divisions.

The results of ERM activities are discussed at the quarterly meetings held by the Control, Risks, and Sustainability Committee; they are also reviewed half-yearly by the Board of Directors, as part of the report by the Head of the Internal Audit division on the suitability and effectiveness of the internal control and risk management system.
Moncler’s ERM system involves the following governance bodies:

 

• the Board of Directors, which defines guidelines and assesses the suitability of the internal control and risk management system at least every six months
• the Control, Risks, and Sustainability Committee, which has an investigative and advisory role in supporting the Board of Directors in its assessment and decisions concerning the risk management system
• the Director in charge of the internal control and risk management system, who is responsible for establishing and maintaining the effectiveness of the system itself as per the indications and guidelines defined by the Board of Directors in collaboration with the Control, Risks, and Sustainability Committee
• the Head of the Internal Audit division, tasked with verifying the performance and suitability of the internal control and risk management system, and coordinating the ERM process
• the Board of Statutory Auditors, which oversees the effectiveness of the internal control and risk management system.