In conjunction with senior management, the operating management teams of the countries/regions/solutions as well as shared service centers are heavily involved in monitoring risks associated with major contracts or business activities in emerging countries. They continually analyze the Groupe’s exposure to the loss of significant contracts, to risks of conflicts of interest and to changes in contractual clauses.
The risks relating to accounting information, the external growth policy, management of the liquidity position, exchange rates, changes in the Groupe’s debt or tax position are monitored by the Finance Department, in conjunction with senior management.
The risks associated with accounting and financial information are also subject to a detailed control, overseen by the Internal Control and Risk Management Department, on the basis of which the FMC (Financial Monitoring Controls) are defined.
The procedure for monitoring the Groupe’s risk management system was formalized beginning in 2008 with risk mapping. All of the risks that may have an impact on the Groupe’s finances, operations or image are listed. These impacts are the subject of an evaluation and a probability of occurrence is estimated for each risk identified; a level of intrinsic risk is therefore determined as well as a level of residual risk after taking into account the control system.
Thus, pursuant to article L. 225-37 of the French Commercial Code, it is stated that with regard to the Groupe’s activities, the financial risks associated with the impact of climate change have a negligible impact. However, the Groupe is mindful of measuring its environmental risks and finding solutions to reduce them (Chapter 4 “CSR” of the Universal Registration Document).
The risk mapping is updated on a regular basis to strengthen the risk management system on an ongoing basis.
In 2020, the Groupe risk mapping was updated twice, and was presented to the Strategy and Risk Committee meetings of March and September 2020. The Risk Department also carried out a study of the impacts of the Covid-19 crisis on our talent, an update of the risk mapping related to the Duty of care and made a significant contribution to the work carried out within the Groupe on compliance with the Sapin 2 law, in particular by updating the corruption risk mapping.
These mappings also served as a basis, along with other items, for preparing the 2021 audit plan.
