Risk Management

The main risks that Saipem is facing and actively monitoring and managing are the following:

(i) the market risk deriving from exposure to fluctuations in interest rates and exchange rates between the euro and the other currencies used by the company and, to a lesser extent, the risk deriving from exposure to commodity price volatility;

(ii) the credit risk deriving from the possible default of a counterparty;

(iii) the liquidity risk deriving from the risk that suitable sources of funding for the Group's operations may not be available;

(iv) the operational risk associated with the potential occurrence of accidents, malfunctions, or failures
with injury to persons and damage to the environment and impacts on operating and financial results;

(v) country risk.

Financial risks are managed in accordance with guidelines defined by the parent company, targeting to align and coordinate Group companies policies on financial risks.