The project represents the element on which the business activity of Leonardo is based and, as such, the main source of company revenues, as well as of operational cash flow.
The Project Risk Management process in Leonardo is applied to all projects, with the primary objective of safeguarding the operating margin, and bases its foundations on the ability to identify and manage treatment actions, in order to reduce or at least limit the risk of projects.
Project Risk Management is an iterative process that starts from the beginning of the bid phase and operates throughout the project life cycle. It is carried out starting from the determination of the risk class of the project and is articulated through the identification of the risks with impact on the project objectives, the subsequent risk assessment, the definition of the treatment action plan, the determination and management of the Contingencies, the continuous monitoring and updating of risks, including the identification of emerging ones.
The Leonardo Group ensures a strong control of project risks within the various operating realities, with the aim of increasing consistency and, hence, effectiveness of project management, for the protection of the value and sustainability of the company business.
The Project Risk Management process is also extended to the Supply Chain, through the introduction of specific requirements in the requests for quotation and contractual documentation with specific suppliers, selected on the basis of the projects needs.
The Project Risk Management process is ruled by a regulatory system, which constitutes a single company framework in line with the highest reference standards. This regulatory system includes: a Procedure (applicable to the One Company), a Directive (applicable to subsidiaries) and a Manual to be used as reference for the methodology to be applied.
PROJECT RISK MANAGEMENT PROCESS PHASES
Calculation of the net benefit of the treatment actions identified, choice and implementation of the treatment actions.
Reporting, carried out at least quarterly, showing the trend of project risk and related protection at One Company level, with further focus on all the Divisions and their most significant projects.