6.1 Introduction

Snam has adopted and undertakes to promote and maintain an adequate internal control and risk management system (“ICRMS”), to be understood as a set of rules, procedures and organisational structures designed to permit the identification, measurement, management and monitoring of key risks.

This system is part of the organisational, administrative and accounting structure and, more generally, Snam’s corporate governance structure, and is based on the Code of Corporate Governance to which Snam adheres, using national and international model and best practice as a reference.

The Code of Ethics sets out the guiding principles on which the ICRMS is based, such as:

• the separation of activities between persons responsible for authorisation, executive or control procedures;
• the existence of company regulations that can provide general benchmark principles for governing corporate processes and activities;
• the existence of formal rules for the exercise of signatory powers and internal powers of authorisation; and
• traceability (guaranteed through the adoption of information systems that can identify and reconstruct the sources, information and checks carried out in support of the formation and implementation of the Company’s decisions and financial resources management procedures).

The ICRMS is audited and updated over time, to ensure that it is always appropriate and to oversee the main areas of corporate risk. In this context, and also to execute the provisions of the Code of Corporate Governance, Snam has adopted an ERM system.