Risk Management

The prevention and management of risks that may affect the Group's objectives is a strategic priority.

The system of internal control and risk management adopted by the Company allows the identification, measurement, management and monitoring of the main risks to which the Group is exposed.

The system adopted by Brunello Cucinelli SpA is characterized by:

  • segregation of duties;
  • traceability of transactions;
  • business, planning and control;
  • wide range of inspections and tests.

Internal control system

Stakeholders

  • Board of Directors

    It defines the guidelines for the internal control system and risk management, assessing regularly the adequacy and effectiveness. It also approves the work plan prepared by the Head of Internal Audit.

  • Control and risks committee

    It supports the assessments and decisions of the Board of Directors concerning the system of internal control and risk management

  • Director in charge of the system of internal control and risk management

    He identifies the key business risks and implements the guidelines approved by the Board of Directors

  • Head of Internal Audit

    He checks the operation and the suitability of the system through an audit plan, he prepares reports and periodic papers to the administrator in charge of the internal control system and management risk and to the chairmen of the board of statutory auditors, of control and risk committee and of the board of directors.

  • Board of statutory auditors

    It monitors the effectiveness of the internal control system and risk management.

  • Supervisory body ex D. Lgs. n. 231/2001

    The Supervisory Body has the task of monitoring the functioning, updating and compliance of the "Model of management and organization" according to Italian Legislative Decree n. 231/2001. The purpose is to prevent the crimes provided for in said Decree; the Model identifies the risks of crime and the relevant penalties, providing adequate defenses designed to prevent the commission of the offense itself.

Controls

The system of internal control is divided into 3 level

1.

Line controls

made directly by the heads of the various operational areas in order to identify, monitor, mitigate and report, in the first instance, the risks arising from ordinary business activities (the manufacturing  activity and sales and distribution business)

2.

Second level controls:

carried out by the departments directly  involved in the management of typical  risks of Brunello Cucinelli business

3.

Third level controls:

carried out exclusively by the key business functions which are included in the internal control system of the Company. In this context, the Internal Audit Function plays a central role as it is called upon to determine, among others, the adequacy of the first two levels controls, through a continuous  process of assessment and testing.