Atos - Registration Document 2016

F Risks analysis [G4-14] External risk factors [G4-13]

F.1

Suppliers

F.1.5

of those suppliers businesses and/or products and/or services, or sources of supply, there is always the chance of possible failure customers’ needs. While there are alternative solutions for most implement and operate IT systems for our own and our may have an adverse impact on Atos operations. the inability to renew agreements on acceptable terms, which works with. Many of these key vendors work with us to design, Atos has a strategic target to reduce the number of vendors it is responsible for managing the cost base of Atos and with Procurement and the Divisions. The Global Procurement function Risks associated with vendors are jointly managed by Global

innovation ideas. contract negotiation and signature, cost savings actions and their identification and selection, input into customer bids, managing commercial relationship with the vendors including one accounted for 7.3% of total Group purchases in 2016, the Regarding the ranking of the main vendors of Atos, the largest amounted to 23.4%. five biggest represented 16.2% of the total and the ten biggest At December 31, 2016, there was no binding commitment with vendors for capital expenditures higher than € 5 million.

[G4-10] and [G4-EC8] Partnerships and subcontractors

F.1.6

business risk that must be closely monitored on the basis of sustainability requirements. quality, cost, delivery, innovation, management and Atos sometimes relies on partners and/or subcontractors to parties is a common practice in the industry but represents a deliver services in particular contexts. Having recourse to third areas where the Group does not have the specific expertise Partnerships may be formed or subcontractors may be used in partnerships or use subcontractors are initiated locally by the to comply with local legislation. All requests to enter into necessary to fulfil the terms of a particular contract, or in order

operational team evaluating the proposal or in specific case at

Group level.

working in the GBU’s; but the commercial relationship is through Subcontracting is managed by Global HR Workforce Managers contracts negotiated by the Global Procurement function. (headcount) working across more than 70 countries During 2016, the Group had in average 6,170 subcontractors contracting with partners. supports the due diligence and approval process when corruption or conflict of interest risks), a “business partner tool” In order to manage compliance risks with partnerships (including

F

Counterparty risk

F.1.7

exposures; defining the type of risk, calculating and managing risk • evaluating and monitoring its counterparties’ financial • standing. been fully implemented for banks and merchants. counterparty credit events on the Company. This framework has The main objective is to mitigate the impact of significant

processing, the day of the week and the card scheme). processed (which may take a few days depending on the type of client) would be in default while the clearing and settlement are counterparty risk in the case a counterparty (mainly card issuer Payments services (delivered by Worldline) expose Atos to a To mitigate these risks, Worldline has developed a methodology for:

Atos | Document de Référence 2016

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