Assystem - 2015 Registration Document

8

REPORTS OF THE BOARD OF DIRECTORS

REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS

Impact For risks whose consequences can be measured in monetary terms, the impact on the consolidated operating results is determined in accordance with the following scale.

Magnitude

Monetary impact on operating results

Very low

Less than €1 M

Low

Between €1 M and €3 M Between €3 M and €5 M Between €5 M and €8 M

Medium

High

Very high

Over €8 M

The consequences of risks that affect the Group’s image and reputation cannot be measured in monetary terms and are therefore assessed based on potential fallout in terms of media coverage and/or crisis management.

Magnitude

Non-monetary impact in terms of media coverage and/or crisis management

Very low

No specific media coverage

Low

Local media coverage; crisis unit limited to local managers

Medium

Regional media coverage; crisis unit involving local managers and BU/divisional directors National media coverage; crisis unit involving the Group’s management bodies

High

Very high

International media coverage; crisis unit involving the Group’s management bodies and direct referral to the Board of Directors

Probability The probability of risks occurring is measured by reference to the past occurrence of comparable and/or similar events, according to the following scale:

Extent

Occurrence of comparable/similar events in the past

Improbable (less than 5%)

Never occurred in the past 5 years

Unlikely (between 5% and 15%) Possible (between 15% and 30%) Very possible (between 30% and 90%)

Occurred once or twice in the past 5 years Occurred once a year in the past 5 years

Occurred more than once a year in the past 5 years

Certain (over 90%)

The risk is the result of non-compliance

reasonable assurance of the successful functioning of controls aimed at reducing the possibility of risks occuring; ● low to medium probability/low to medium impact : risks requiring that the Board of Directors is regularly informed in order to provide it with reasonable assurance of the successful functioning of controls aimed at mitigating the impact in the event that the risks occur; ● low probability/low impact : non-priority risks requiring that the Board of Directors is periodically informed in order to provide it with reasonable assurance of the successful functioning of controls aimed at containing the risks in this category or completely eliminating them.

The various risks thus assessed are positioned on a map with two axes (impact and probability), which is then used to rank them as follows: ● high probability/significant impact : priority risks which require attention and monitoring by the Board of Directors. These risks are placed under the direct responsibility of one or more members of the Board of Directors, who are tasked with ensuring that a related action plan is in place and that the resulting measures taken effectively reduce the level of risk; ● high probability/low to medium impact : risks requiring that the Board of Directors is regularly informed in order to provide it with a

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ASSYSTEM

FINANCIAL REPORT 2015