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Corporate governance
Risk management
Risk management
3.5
In an uncertain, constantly changing environment, proactive risk communication of best practices, with a focus on prevention (3.5.2).
management is an essential part of sustainable development for our
The risk management system is also presented in the section entitled
business, and is an aim shared by all of our employees. This approach “Chairman’s Report on internal control and risk management
also enables the review of all processes within the Company and procedures” starting on page 124 of this Registration Document.
identification of opportunities and areas for improvement.
As part of a regular analysis and review of insurable risks, the Group
The risk management system implemented by the Group is primarily
also implements solutions to transfer risks to the insurance market
based on identifying and accounting for risk factors which may have a (3.5.3).
significant impact on its activities, its financial position and its image To manage difficult situations that may significantly impact its
(3.5.1).
activities or its image, the Group has also developed a comprehensive
For the past several years, the Group has been committed to a crisis management system (3.5.4).
coordinated risk management policy based on risk mapping, rules and
Risk factors
3.5.1
The principal risk factors identified by the Group are presented below,
Economic environment and market volatility
grouped into four themes: business environment, strategy and
The economic situation in countries where the Group operates may
governance, operations, and financial.
affect demand, spending levels and the purchasing habits of our
All listed risks may have an impact on the Group’s activities or its
customers, increased by the instability and unpredictability of the
ability to fulfil its objectives. There may also be other risks of which the global, national or regional economic climate. Volatility in asset prices
Group is unaware as of the date of this Document, or which may evolve and the cost prices of assets and products related to raw materials
with significant negative consequences.
(agriculture, metals, fuel, energy costs, etc.) may also impact sales,
costs and balance sheet values.
The system presented in 3.5.2 aims for comprehensive risk
management in order to avoid the occurrence of risks or limit their
Due to the nature of its activities, the Group pays particular attention
impact, through a customized protection and prevention policy.
to monitoring and taking into account the changing economic climate
and future outlooks in the countries where it operates, specifically
The management and oversight systems for each risk factor are briefly
through a number of studies and exchanges. Given the
stated.
interdependence of activities and the price sensitivity of Group
Business environment
3.5.1.1
customers, changes in market prices are also taken into consideration
at various levels, especially purchases of merchandise and general and
administrative expenses. The Group pays close attention to the
Political and social environment
economic climate in certain emerging countries, and remains vigilant
regarding the circumstances in other countries.
Some of the Group’s activities are exposed to risk and uncertainty in
Key economic indicators in countries where the Group operates are
countries which have experienced or may experience a period of
tracked monthly and are taken into account in both strategic planning
political or social instability or weak governance.
and project evaluation. The Group sometimes relies on a panel of
During the past several years the Group has developed country-specific experts as part of its oversight.
risk mapping which takes into account a number of indicators, is
Environment, pressure and regulatory changes
updated annually and provides forward-looking monthly tracking, in
order to support decision making in the context of the Group’s
international growth.
Regulations applicable to the Group in countries where it operates,
along with regulatory changes and actions taken by local, national and
For example, some countries operated with franchise partners are
international regulators, are likely to impact our activities and the
suffering from social tension or political instability, leading the Group
Group’s financial performance.
to carefully monitor these developing situations.
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