System of internal control

The Board of Directors has the responsibility of the internal control system, which sets out the guidelines and regularly reviews the adequacy and the effective functioning of the Board.

The internal control system of the Company - and of the Pirelli Group in general - is structured to ensure a correct disclosure and adequate coverage of control over all Group activities, with particular attention to areas considered potentially at risk.

The internal control system is, in the first place, a "management" tool as it is useful and necessary for the Board of Directors, for the Executives Directors and managers in general to properly and effectively carry out the tasks assigned.
The internal control system can, in fact, monitor the compliance of the rules and procedures governing the conduct of business in its multiple joints.
Pirelli internal control system has developed as a process to pursue the material and procedural fairness, transparency and accountability values, ensuring that: (i) the efficiency, consistency and verifiability of operations and, more generally, the related activities management, (ii) reliability of accounting and management data and financial information, (iii) compliance with laws and regulations, and (iv) safeguarding corporate integrity, also in order to prevent fraud against the Company and of financial markets.
The core rules of the Company's internal control system are:
the separation of roles in the main activities related to individual operating processes;
tracking and constant visibility of choices;
the management of the decision-making processes based on objective criteria;

    1. Director in charge of the Internal Control System

      1. The Board of Directors, at the meeting held on 31 August 2017, identified in the Executive Vice President and Chief Executive Marco Tronchetti Provera the Director in charge of the Internal Control System to which, in line with the recommendations of the Self-Regulatory Code, the following homework:
        • Identify the main business risks, taking into account the characteristics of the activities of the issuer and its subsidiaries, and submit them periodically to the Board of Directors;
        • to implement the guidelines defined by the Board of Directors, with due regard to the design, implementation and management of the internal control and risk management system, constantly verifying the overall adequacy, effectiveness and efficiency;
        • take care of adapting this system to the dynamic of operating conditions and the legislative and regulatory landscape;
        • may request the internal audit function to carry out audits on specific operating areas and to observe internal rules and procedures in carrying out business operations;
        • reporting in a timely manner to the Control, Risk, Sustainability and Corporate Governance (or the Board of Directors) on issues and criticalities that have emerged in the conduct of their business or have had any news in order to enable the Committee (or the Board) to take the appropriate initiatives.

Last revised: 4 Oct 2017 7:00 am