LensCrafters 2015 Annual Report Download - page 62

Report on corporate governance and ownership structure as of December 31, 2015 Page 22 of 45
Succession plans
In 2015, the Human Resources Committee reviewed the Company’s processes aimed at identifying talented and
qualified individuals who could assume managerial positions from one generation to the next and identified succession
plans for the key managers of the Group. In light of the changes that occurred during the first part of the 2016 to the
Company’s top management, the Human Resources Committee is planning to review, in the coming months, the
succession plans for the Executive Directors and will update the succession plans for individuals designated as
“managers with strategic responsibilities”.
II. INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM
Information on the internal control and risk management system of the Group is provided below and also pursuant to
art. 123-bis, paragraph 2, letter b, of Italian Consolidated Financial Law.
Definitions and Objectives:
Luxottica believes in the importance of developing an internal control culture and management of risk that promotes the
undertaking of informed decisions and contributes to the safeguarding of company assets, the efficiency and
effectiveness of company processes, the reliability of financial reporting and compliance with laws and regulations, as
well as with company by-laws and internal procedures.
The internal control system over financial reporting and risk management (“ICFR System”) consists of tools,
organizational structures and procedures for each area of activity, which are set forth in the manuals updated and
distributed within the Group and which are aimed at contributing to the fair management of the Company in line with
predetermined objectives.
The ICFR system, which is integrated into more general organizational structures and the corporate governance of the
Company and the Group, is aimed at enabling the Group’s primary risks to be identified, measured, managed and
monitored, as well as ensuring that financial reporting is reliable, accurate and disclosure is made promptly. Luxottica is
aware that the efforts made to define an efficient internal control system, capable of ensuring complete, accurate and
correct financial reporting, do not represent a one off activity but rather a dynamic process that must be renewed and
adapted to the evolution of the business, of the socioeconomic environment and of the regulatory framework.
According to the provisions of the Code of Ethics of Luxottica, each recipient of internal control procedures must
cooperate fully with the internal functions and the external bodies appointed to check the efficiency of the ICFR
System.
Best practice principles of the Group
The structure of the ICFR System of Luxottica Group, which monitors the preparation and disclosure of financial
reporting, is consistent with national best practices, such as the guidelines of Confindustria and the principles of the
Code of Conduct for Listed Companies, and international best practices, such as the COSO (Committee Of Sponsoring
Organizations of the Treadway Commission) Internal Control – Integrated Framework and the COBIT (Control
Objectives for Information and Related Technology) of ISACA (Information Systems Audit and Control Association).
Sarbanes-Oxley Act (SOX)