Sidenor 2022 Sustainability Report

44 Sustainability Report 2022 | Good governance, ethics and transparency Without limiting the foregoing, the Company Management has identified the main risks, associated with internal or external factors, to which the organization is exposed, and has a Risk Control and Management Policy which establishes a general framework for action, in order to reasonably ensure that all risks identified (Operations and Infrastructure, Strategy and Planning, Governance) are prevented, evaluated, submitted to continuous follow-up, and reduced to the assumption and tolerance levels defined by the Management. The main non-financial risks identified at Sidenor are the following: Risk management Talent Managing the growth and sustainability of the Company requires the strengthening and development of people. Working conditions must be able to attract the best professionals. To this aim, we design plans and implement internal development as well as external recruitment strategies. Succession It is necessary to identify people who are key and with potential in the Company, in order to ensure its continued existence and the maintenance of know-how. To this aim, we design constantly evolving succession plans and maps. Cyberrisks Information systems may fail, be damaged or attacked, thus jeopardizing the Company’s activity as well as affecting or hindering its normal operation. A significant effort is thus necessary in order to better secure systems and to plan how to act in case of a cyberattack. Quality In the market in which Sidenor operates, it is essential to maintain high quality standards; otherwise, the Company’s image might be affected, and the organization might suffer a loss in customers or an increase in its costs. OPERATIONS AND INFRASTRUCTURES Cyclical business Changes in market tendencies might occur; for this reason, the Company needs to be flexible and prepare for such changes, especially in the automotive sector. M&A Risks associated with M&A operations which aim at the growth and diversification of the Company. New competitors The Company operates in a highly competitive environment and, in order to maintain or increase its market share, it needs to be prepared to compete with potential new competitors. Culture and organization The implementation of the Company’s Strategic Plan requires the culture and values of Sidenor to reach all areas of the organization. STRATEGY AND PLANNING GOVERNANCE