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4
Risk Factors
Insurance and riskmanagement
26
Worldline
2016 Registration Document
The Group also maintains policies required for regulatory
reasons or to cover existing commercial premises, such as its
credit risk policy, where the Group’s various entities incur
specific risks.
policies.
The Atos group formed a dedicated reinsurance company,
which it wholly owns. This reinsurance company covers the
Group’s entities in respect of certain portions of the general
professional liability and operational and business liability
The insured risks are also monitored by the subscription
committee of the reinsurance company owned by the Atos
group, which ensures that capital and technical reserves are
sufficient for the risks incurred and seeks a satisfactory level of
diversity in reinsurers. The committee also performs studies and
analyses on a regular basis to verify the adequacy of the
Group’s insurance coverage.
Riskmanagement
4.5.2
Risk management refers to the means deployed by the Group
to identify, analyze and manage risks. Although risk
management is part of a manager’s day to day decision making
process, specific formal initiatives have been taken in respect of
risk management, as summarized below.
Riskmapping
4.5.2.1
The risk mapping exercise was updated in 2016 on the initiative
of the Group’s management designed to identify and assess
risks that may affect the ability of the Group to achieve its
objectives. The methodology involved workshops and
questionnaires to enable management to comment on and
evaluate the main risks, their relative importance (inherent risk)
and mitigation effectiveness (residual risk).
(clients, people, IT, processes) and information used for decision
making (financial and operational).
The scope of the assessment covered potential risks related to
our environment (stakeholders, natural disasters), business
development (evolution, culture, market positioning), operations
A risk mapping exercise is conducted annually, enabling
detection of changes in risks year-on-year. The 2016 risk
mapping exercise was performed in connection with the annual
budget preparation and integrates action plans for the main
residual risks designed at the Group level, with responsibilities
and milestones established to ensure follow-up and completion
in 2017.
management
Business risk assessment and
4.5.2.2
Regarding business risk assessment and management, the
Group has deployed the approach developed by Atos, based on
the following specific processes.
Atos Rainbow
Atos Rainbow
TM
is a set of procedures and tools developed by
Atos and implemented by the Group that provides a formal and
standard approach to bid management. The objective is to
ensure that the Group only bids for projects that it is capable of
management process:
delivering effectively and to provide an early warning system for
any project that encounters problems or diverges from its
original targets. The Group operates a risk management system
overseen by the Atos Risk Management Committee that
facilitates the analysis (in particular via identification and
evaluation) and treatment (in particular via control and
financing) of business risks throughout the life cycle of a project.
This process is integrated within the control and approval
process when entering into new contracts and continues
throughout the lifecycle of the project. Specifically, the risk
identifies potential exposures, including technical, legal and
●
financial risks, that could have an impact during the life cycle
of the project;
evaluates, both qualitatively and quantitatively, the
●
materiality of any such exposures;
ensures that appropriate and cost-effective risk control or
●
risk mitigation measures are initiated to reduce the
likelihood and impact of negative outcomes on the project;
and
manages residual exposure through a combination of
●
external risk transfer instruments and internal contingency
reserves in order to optimize the resources used.
The Group’s contract monitoring process has been reinforced
with the introduction of a monthly “dashboard” report that
provides status on financial, technology, customer, legal and
supplier project KPIs. This process is managed by the “rainbow
manager”, who reports to the Group’s CFO.
RiskManagement Committee
review the most significant contracts as well as any contracts
where issues have arisen. The Committee is chaired by the
Group’s CFO. Permanent members of the Committee include
the General Manager of the Group, the heads of the global
business lines, and several representatives of support functions,
including finance and legal.
A Risk Management Committee convenes on a monthly basis to