The Group launched a three year «Risk and Compliance Programme» to reinforce the overall risk management infrastructure based on the identifi cation, measurement, management and control of the Group’s most signifi cant risk exposures.

Implementing a risk management system means having business policies covering statements of principles, relevant processes and procedures, clear assignment of roles and responsibilities, improvement of personnel knowledge, skills and expertise and effective reporting systems.

The programme, implemented with the support of an external consulting firm, is structured around four phases.

• Set up: development of the Italcementi Risk Model, selection of risk categories threatening the achievement of strategic business objectives and development of risk assessment methodologies and tools.
• Risk assessment: identifi cation and analysis at country and corporate level of major risk events, evaluation of their financial and non financial impact as well as their probability of occurrence, consolidation of risk assessment results to provide an aggregate view of the Group’s risk portfolio.
• Risk Mitigation: for significant risk events, selection of appropriate risk management strategies and definition of the related risk governance rules to properly address relevant risks within the Group’s development, at corporate and country level, of specific risk mitigation actions to align and improve the existing risk management capabilities.
• Risk Governance and Implementation: development and implementation of specific risk policies at Group level, implementation of risk management action plans, consolidation and roll out of the enterprise risk management process.

In 2010, a Chief Risk Officer, reporting directly to the CEO, will be appointed in order to continuously enhance, facilitate and manage the process within the Group.

The programme will be fully implemented by 2013.

Additional information is available in the sdReport .