Led by the Board of Directors, Risk management is a central part of Augustea strategic management and organization, aimed to achieve sustained benefits within each business unit and across the portfolio of all group activities.
Risk management is intended as a continuous and developing process to add sustainable value to all activities.
The Board of Directors is ultimately responsible for overseeing the effective risk management.
The CEO has overall responsibility for governance and risk management, while the Internal Control Committee ensures, on behalf of the Board, that appropriate risk management processes are in place.
Senior management has the primary responsibility for managing risk on a day-to-day basis and for promoting risk awareness within their operations.
The main risks that Augustea is facing, actively monitoring and managing are:
- the market risk deriving from exposure to fluctuations in freight rates, interest rates, foreign currency exchange rates and commodity prices;
- the credit risk deriving from the possible default of a counterparty;
- the operational risk;
- risks associated with the current trends of the industries in which the Group operates.
The parent company ensures the effective Group-wise implementation and management of risk management processes regarding all risks affecting the economical and financial performance of the Group and its subsidiaries, as well as their asset.
Through specific guidelines targeting to align and coordinate the Group companies, Augustea Holding aims to
- define and implement a Group-wide risk management governance, as well as proper methods for the identification and measurement of risks;
- implement a risk control system within a risk mitigation strategy;
- monitor risks;
- transfer unmanageable risk to the insurance market.
Read more about the Augustea risk policies.
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