Commitment to Excellence

Risk Management & Compliance

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Risk is an integral part of doing business and can be defined as any uncertain event that could threaten the achievement of business objectives and strategies or the Group’s tangible and intangible assets. 

Luxottica is risk adverse towards events that could:

  • negatively affect the safety or well-being of employees, consumers and other stakeholders;
  • lead to breaches of local laws or regulations;
  • endanger the environment; 
  • negatively affect the Group’s reputation.

Identifying and understanding risks allows for informed decision making when actively managing events that could potentially have a negative effect on:

  • cash flow and profitability;
  • strategic business objectives;
  • tangible and intangible assets.

Within this context, the Group’s Risk Management department supports the organization to:

  • manage risks in terms of prevention and mitigation;
  • proactively seize opportunities;
  • disseminate a culture of risk evaluation across the Group’s decision-making process, in particular, in the strategic planning process and significant business decisions;
  • ensure that the Group’s risk exposure is consistent with the Board of Director’s risk appetite and does not exceed its financial and economic capacities given the objective of achieving long-term sustainable performances;
  • assure transparency and adequate information on Luxottica’s risk profile and risk management strategies to top managers, the Board of Directors and other relevant stakeholders

To meet these goals, in 2011 the Risk Management department launched a proactive, structured and coordinated Enterprise Risk Management (ERM) approach to identify, manage and monitor risks with potential negative impact on the future growth of the Group and its tangible and intangible assets. The approach is integrated into the Company’s processes, supports its strategic and operating decisions and permeates the entire organization.

Compliance Risk Management

Luxottica’s global dimension requires the constant alignment of the Company’s processes, procedures, conduct and activities with the regulatory frameworks and the Group Code of Ethics. Below are the main compliance programs that Luxottica has been working on for some time.

The Prevention Of Corruption

In terms of anti-corruption, the Compliance department oversees the definition of rules to prevent, identify and manage risks connected with corruption in the Group’s businesses, in accordance with the law as well as applicable local and international regulations.

This commitment is outlined in the Code of Ethics and is further strengthened by the adoption of company policies an   d procedures that regulate the areas that could be exposed to corruption crimes.

In addition, a specific compliance program, named “Be transparent and keep it transparent”, was launched in 2017 and is applied globally. The classroom training activity launched in China in 2018 for the legal entities most at risk continued in 2019 and involved business leaders and key managers in Brazil.

Luxottica is also part of Transparency International, the biggest global organization for the prevention and combating of corruption, and actively participates in conferences and meetings where it shares best practices in this area.

For more information on the Group’s “Be transparent and keep it transparent” program see the LUXOTTICA ANTICORRUPTION COMPLIANCE PROGRAM à

Privacy 

With approximately 7,100 directly operated stores around the world and a growing presence in the e-commerce sphere, Luxottica is aware of just how much its customers value their privacy. The company is committed to guaranteeing maximum levels of transparency in the way it collects, uses, communicates, transfers and retains information relating to them.

Luxottica's Compliance department has implemented the measures required to guarantee compliance with all the main applicable regulations. This includes the definition of a privacy process, creation of an organizational structure specifically dedicated to privacy (with the appointment of Data Protection Officers), review of multiple security policies, guidelines and directives and the deployment of awareness-training sessions (either online or in classroom) for employees.

Anti-Money Laundering

Luxottica has developed and disseminated at global level the “Anti-money laundering and terrorist financing policy”, whose aim is to guarantee respect for all laws and regulations, actively prohibiting and preventing any activity that may be considered or which could facilitate money laundering and/or the financing of terrorist or criminal activities.

Antitrust Compliance

In line with the Code of Ethics, Luxottica has had an Antitrust program since 2015 which defines principles of conduct in the management of business practices and includes specific training activities.