For further information on all the risks and uncertainties to which the companies in the Acea Group are exposed, please read our  2018 Consolidated Financial Statement.

For further information on our central monitoring stations for particular risk categories, please read our  Report on corporate governance and ownership structures.

Function Risk & Compliance

In 2017, the Board of Directors integrated the Risk & Compliance Department into the macro-structure. It then continued in 2018 to underpin this fundamental supervision, in order to regulate and manage the SCIGR (Internal Control and Risk Management System). More specifically, the department was assigned the task of:

  • guaranteeing the insurance risks, to which the company business is subject, are monitored
  • identifying, describing and measuring the main risk factors, which can compromise the achievement of the Group's strategic objectives
  • coordinating and developing topics regarding social and environmental sustainability
  • playing a preventive, proactive role in pre-assessing risks of non-conformity of the company business with the relevant legislation

Regulatory and legislative risks

As is well-known, Acea operates mainly on regulated markets: the change in operational rules for these markets and the provisions and obligations, which characterise them, can significantly affect our results and business performance.
Therefore, the Group has established a structure, which can create closer relationships with local and national governance and regulatory organisations. This structure ensures the developments in legislation are constantly monitored not only during the support stage, during which comments and observations on the Consultation Documents are prepared according to group interests, but also in the consistent application of the legislative provisions within our corporate processes and electricity, gas and water businesses.

Operational and Environmental Risks

  • Acea Ato 2: problems linked to non-compliant drains and problems with the drinking water system. For further details, please refer to our 2018 Consolidated Financial Statement.
  • Commercial and Trading Segment: the main operational risks connected to Acea Energia's business can regard material damage, damage to persons and damage arising from systems and exogenous events.
  • Energy Infrastructure Segment: the main risks in this industrial segment depend on the efficacy of our investments to replace/upgrade the mains networks; the quality, reliability and duration oif the works implemented; compliance with the time schedule to obtain the permits; lack of production.
  • Environmental segment: the Terni and San Vittore plants in Lazio have been involved in revamping and optimisation projects which have risks regarding the construction of complex industrial infrastructures. The Orvieto plant has completed major upgrading of its recovery processes for composting and is currently undergoing an extension, whereas the Latina, Monterotondo Marittimo and Sabaudia plants are involved in interventions to extend and upgrade them.

Market risk

The Group is exposed to various market risks, more specifically:

  • The risk of a variation in prices and volumes of the commodities bought and sold
  • The interest rate risk
  • The exchange rate risk, which only minimally concerns Acea

To contain exposure to within set limits, the Group has stipulated hedging contracts, using the types on offer on the market.