Page 33 - Consolidated Non Financial Statement

Banca Ifis

| 2020 Consolidated Non-Financial Statement
2.2 Main risks associated with non-financial topics

[GRI 102-15]
For each material topic, the Banca Ifis Group has identified the nature of the relevant risks as well as the main risks and
how they are currently managed. The findings are summarised in the following table.

Main safeguards/mitigating
Banca Ifis topics Nature of risk Main risks
actions
• Internal fraud, perpetrated by the • Code of Ethics
Corporate integrity Reputational; Group's employees and Agents that • Organisational, Management and
and anti-corruption Compliance/Operational work together with the Group Control
• Aggressive debt collection practices Model as per Italian Legislative
and/or instances of abnormal conduct Decree no. 231/2001
on the part of external collectors and • Whistleblowing
agents • Specific safeguards for the Group's
• Involving, even unwittingly, the Group in agents
money-laundering and terrorist financing • Systematic anti-money laundering
and terrorist financing monitoring
• Employee training
• Insolvency or deteriorating • Individual creditworthiness
Credit quality Credit creditworthiness of the counterparties assessment processes and system
the Group is exposed to for the delegation of risk-taking
• Failure to collect receivables due from • Systems for scoring prospective
counterparties in default lessees (leasing)
• Systems for verifying the collection
potential of the positions on a portfolio
level and per individual counterparty
(Npl)
• Credit monitoring
procedures
• Loss or misuse of the Group's data • Centralised organisational structure to
Data protection Reputational; deriving from internal or external threats manage the Group's Privacy and
Compliance/Operational
involving employees or IT systems Security
• Organisational measures to handle
personal data
• Organisational measures to ensure
business continuity
• Procedures for dealing with IT
incidents
• Employee training

• Negative coverage in local, national, or • Corporate information handling policy
Brand reputation Reputational international media; negative comments and relevant organisational control
on social networks units
• Customer dissatisfaction and negative • Listening to and engaging with key
turnover stakeholders
• Loss of market share and decline in the • Timely communication to the markets
share price and the press
• Complaints, legal disputes, • Monitoring reputational
administrative/civil/criminal penalties risk indicators
• Failures and mistakes in operations • Credit management policy
Support to Reputational; related to financial inclusion initiatives, and subsidised financing procedures
enterprises Compliance/Operational; giving rise to reputational impacts or • Local information/training initiatives
and financial Credit credit risk
inclusion
• Malfunctioning or non-operational new • ICT strategic planning policy
Digital innovation Reputational technology • Digital solutions to improve the
• Customer dissatisfaction, potentially customer experience and monitoring
leading to customer complaints or loss
• Rising customer dissatisfaction, leading • Process for approving new products
Quality of products Reputational to negative turnover and services, starting new operations,
and services
• Lower perceived reliability and security and entering new markets
of the Bank and the services it provides • Products committee
• Constant efforts to make operational
processes more efficient in order to

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