The Group has adopted an integrated Enterprise Risk Management (ERM) system based on international best practices. The system involves Moncler’s entire organization and governance bodies, each acting within the scope of their respective spheres of 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 model 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 decision-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 model divides risks into four categories:


• Strategic Risk;

• Business Risk;

• Compliance Risk;

• Financial Risk.


Strategic risks relate to changes in business or to inadequate responses to changes in the competitive environment and the Company’s business development activities. Sustainability risks may fall within this category.


Business risks are those related to the sector in which the Group operates, its operations, organizational structure, information systems, and control and reporting processes.


Compliance risks are generally associated with business conduct, and relate to breaches of laws and regulations applicable to Company operations at the national and international level, as well as to the Code of Ethics and violations of internal procedures.


Financial risks are those related to the Group’s financial management and specifically to liquidity, foreign exchange, interest rates, and financial counterparties in financial and commercial transactions.


With regard to internal risks, the objective of the ERM model is to manage them through specific prevention and control measures incorporated into Company processes, designed to eliminate the risk, minimize its likelihood of occurring, or contain its impact in the event of occurrence. As for external risks, the ERM model aims to monitor them and mitigate their impact in the event of occurrence, for instance through insurance policies.

The risk assessment identifies all the risks and their risk owners, responsible for managing the risk itself and the corresponding control system, and for implementing or improving mitigation measures. All risks, their assessment by the internal risk control system, and the efforts taken to mitigate them are recorded in a Risks Register, which is updated regularly with the 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 2020, within the field of ERM, two activities of note were completed with the collaboration of the risk owners: the COVID-19-driven Risk Assessment, which identified and assessed 33 risks on which the pandemic has had a significant impact, with input from the regional liaison officers; and finalizing a follow-up to the mitigation efforts implemented or planned for risks which as of December 2019 exceeded the Company’s risk appetite (Risk Assessment Business as usual). A specific assessment was also carried out with the Digital, Engagement & Transformation unit in order to look into the risks of Digital processes.

Further to these activities, the ERM portfolio was updated to include 151 risks (140 in 2019).