Sustainability Report 2020

Risk Management

PSC, the Group’s holding company, describes in the industrial plan the vision, the mission, the medium and long-term strategies. Oncethe guidelines have been set up, the operational plans of the business units and the sites connected to them are developed.

The PSC management looks into the analysis and evaluations suitable for the operational planning draft, which is an activity carried out in an interdisciplinary manner; for this reason, in this process, several business functions are involved along with external members of particular interest, such as customers and suppliers.

In the Business plan, the strategic guidelines are:


Competitiveness:
the Group’s ability to supply competitive products and to stay in the market, facing competition.


Technological innovation:
this step adds several variants, among which the improvement of products and processes, in order to increase quality, performance and flexibility, as well as to reduce costs; the introduction of new products and innovative production and distribution methods, continuously looking for superior quality.


Globalization:
distribution of production on a local and global scale, according to customer’s needs.

The activities in line with PSC strategic guidelines are defined by the business holding: each production site adheres to them, according to the following process:

  • PSC analysis of the business plan: each business unit finds solutions complying with its own standards, so to apply the guidelines established by the Group.
  • Identification of the relevant factors thanks to the S.W.O.T. Analysis (Strengths Weaknesses Opportunities Threats): it is therefore possible to identify the strengths and weaknesses of the internal context, as well as the external risks and opportunities. These elements are subsequently related to the parties concerned.
  • Evaluation and identification of significant factors: in particular, the probability of occurrences and their impact on market share, alongside competitive advantage and reputation.
  • Definition of operational planning, taking into account the risks involved, in particular:
    • Avoid risk by deciding not to start or to continue the activity in the event of its arising
    • Take or increase risk, in order to pursue an opportunity
    • Remove the source of risk
    • Change the probability
    • Change the consequences
    • Share the risk with a partner (also through contractual formulas for financial risk control)

Actions to face risks and exploit opportunities, in reference to sustainability as well, are the inputs necessary to define the operational planning in line with the company strategy.

The Group has also stipulated policies with important companies in the field, with the aim of covering the main business risks in industrial activities. The insurance coverage involves all material damages to buildings, plants, machinery and goods owned by the Group companies, whether they are present in PSC plants or by third parties.

Limits and specific exemptions change according to other factors, such as: weather events, intentional acts of third parties, structural collapse, liquid leakage and mechanical breakdowns. Any economic losses that may result from business interruptions or caused by factors, such as those listed above, are also covered by insurance. Finally, possible damages to third parties were also insured, if resulting from claims and covered by policy (third-party claim and interruption or suspension of third party activities).

A policy consisting of three sections, concerning claims for damages, was signed by the Group companies. More specifically: third-party liability, civil liability of factory workers and products. Each coverage uses limited maximum coverage and allowances.

A careful and proper management of business risks has helped to make PSC a group generating value and wealth, to be partly spread to its stakeholders

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