The "Group Financial Policy" defines general principles and guidelines for financial management and the management of financial risks, such as market risk (exchange rate and interest rate risk), counterparty credit risk and liquidity risk.
The Group's financial model involves centralizing cash flows relating to any positions at risk with the Parent Company; the cash surpluses of some companies cover the deficits of others, reducing the need for outside sources of finance and so optimizing financial income and expenses. It is the Parent Company who generally has recourse to outside finance, meaning that over 90% of the Group's exposure to the banking system was held by Benetton Group S.p.A. at December 31, 2009. The exposures to risk of individual companies are hedged by the Parent Company; currency sales by some companies can be reduced or matched by currency purchases by other companies, thereby reducing the amount of hedging transactions with third parties.