E.1. Risk Management System

The Group is a member of the Generali Group and is part of its risk management structure. The Generali Group has implemented a Risk Management System that aims at identifying, evaluating and monitoring the most important risks to which the Generali Group and the Group are exposed, which means the risks whose consequences could affect the solvency of the Generali Group or the solvency of any single business unit, or negatively hamper any Group goals.

The risk management processes apply to the whole Generali Group, all the countries where it operates and each business unit. However, the degree of integration and depth varies with the complexity of the underlying risks. Integration of processes within the Generali Group is fundamental to assure an efficient system of risk management and capital allocation for every business unit.

The main objectives of the risk management processes of Generali Group is to maintain the identified risks below an acceptable level, to optimise the capital allocation and to improve the risk-adjusted performance.

Risk management policies and guidelines of the Group are in place treating the management of all significant risks the Group is exposed to (incl. methodologies to identify and assess risks, risk preferences and tolerances, escalation process etc.). Risk Management System is based on three main pillars:
a) risk measurement process: aimed at assessing the solvency of the Group as well as all individual units,
b) risk governance process: aimed at defining and controlling the managerial decisions in relation with relevant risks,
c) risk management culture: aimed at increasing the value creation.