The business unit administrator identifies the activities consistent with PSC strategic guidelines by following the process described below:

• Analysis of PSC business plan: each business unit verifies the applicability of the strategic lines established at Group level to its own peculiarities.
• Identification of relevant factors thanks to the S.W.O.T. analysis (Strenghts, Weaknesses, Opportunities, Threats): a step that allows you to detail the strengths and weaknesses of the internal context, as well as external risks and opportunities. These elements are then related to stakeholders.
• Assessment of the significance of the factors identified: a risk factor is identified according to a matrix that evaluates the probability of occurrence and the impact that would have on market share, competitive advantage and reputation.
• Definition of the operational plan, by taking into account the risks involved, and in particular:
  • avoid the risk by deciding not to start or continue the activity that led to its appearance
  • take or increase risk to pursue an opportunity
  • remove the risk source
  • change the probability of the risk occurring
  • change the consequences
  • share the risk with a partner (also through contractual formulas for financial risk control).

The actions to cope with risks and exploit opportunities, with regard to sustainability, are the necessary inputs to carry out the operational plan in line with the company’s strategy.

The Group has also taken out policies with important companies in this department, in order to cover the main corporate risks related to industrial activities. This is a comprehensive insurance covering all material damage to buildings, plant, machinery and goods owned by the Group’s companies, whether they are present in PSC plants or as at third Parties.

Factors such as atmospheric events, criminal acts by third Parties, structural collapses, fluid leakage and mechanical failures may affect thresholds and specific allowances. Any economic losses resulting from business interruptions or factors such as those listed above are also covered by insurance. Finally, possible damages to third Parties resulting from claims covered by the policy (third Party claim and interruption or suspension of its activities) have been insured.
Group companies have taken out a policy consisting of three sections relating to indemnity obligations. In detail: third party liability, workers liability² and product liability. Each of these covers operates with limited ceilings and deductibles.
A careful and correct management of corporate risks has contributed to making PSC a Group that creates value and wealth, by spreading part of it to its stakeholders.

2. Technical term used in the insurance industry to refer to all employees of the company