Mission and Reference principles

Mission and Reference principles

“In 2019, the Risk Management Function started working on the new Enterprise Risk Management (ERM) framework, which, in line with the Top Management’s new vision and consistent with the recommendations of the Corporate Governance Code of listed companies, focuses on the management of major risks for the creation and protection of value, by integrating risk management culture and practices in the processes that define performance strategies and management.”

What does Risk mean for Nexi

“Risk”, according to Nexi ERM Model, is any uncertain event that may potentially influence the achievement of Company goals and corporate strategies and / or jeopardize the Group's tangible and intangible assets, with an important impact in terms of performance, operations and/or reputation. In this sense, risks are by their nature, integral part of business activities.

Identifying a risk does not necessarily mean declaring its certain existence, but being aware that a specific risk could verify. The mission of ERM model is thus to promote the assumption of informed decisions, based not only on expected results but also on underlying risk profile with the guarantee of a proper management in line with corporate risk appetite.

Goals and principles

To this end, Nexi Group’s ERM model has the following goals:

  • To identify, prioritise and regularly monitor major corporate risks, so as to guide investments and resources towards the most critical and relevant area of exposures for the Group;
  • To assign roles and responsibilities for managing risks in a clear and shared way;
  • To spread the culture of risk and a risk-based approach in the Group’s decision-making processes, boosting the management’s awareness of the major risks the company is exposed to.

The principles underpinning Nexi’s ERM model are the following:

  • Comprehensive vision: by analysing all types of risk the Group is or might be exposed to under ordinary or stress situations;
  • Value-driven approach: focus on the most significant risk events that may impact the Group’s value drivers, the achievement of strategic goals and/or the business’ sustainability in the medium-long run;
  • Top-down approach: the Top Management, with the support of the Risk Management Function, identifies, prioritises and manages the main corporate risks;
  • Actionability: focus resources on the management and mitigation of risks for which Nexi has intervention levers;
  • Collaboration: all organisational units of the Group are called to actively contribute, according to their areas of expertise and activities, to the identification, assessment and management of risks, based on the risk appetite defined by the Holding Company’s Board of Directors;
  • Transparency: in relation to the Group's risk profile and risk management strategies towards the Board of Directors and adequate disclosure to shareholders and all other relevant stakeholders.

Consistent with the Group’s mission and values defined by Code of Ethics, Nexi is risk adverse towards events that could:

  • Lead to non-compliance with regulations, Supervisory Authority provisions and/or other rules applicable to the Group;
  • Drive to an interruption in the supply of services to Clients;
  • Compromise the protection of the data processed in Group operations.