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REPORTS OF THE BOARD OF DIRECTORS
8
REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS
8.1.3.3.3 IDENTIFYING, ANALYSING AND MANAGING RISKS
The Group attaches critical importance to effectively managing its risks.
The main categories of risk to which the Group is exposed, to a greater
or lesser extent, are as follows:
●
financial risks;
●
contractual risks;
●
employee-related risks;
●
market-related risks;
●
risks relating to IT systems.
The “Risk factors” chapter of this Registration Document describes the
Group’s main risks as well as the measures implemented to manage
them.
The quarterly project reviews help to identify the various risks involved
in ongoing projects and to decide on any actions to be taken to reduce
them. These reviews – which mainly relate to fixed-fee projects – are
carried out using check-lists and enable the following areas to be
dealt with:
●
recognition of revenue in line with the financial progress of the
contract;
●
margin on completion;
●
contractual risks and related reserves and provisions;
●
cash flows.
Monthly project reviews are also organised inside business units. These
reviews cover a virtually exhaustive spectrum of ongoing projects.
The General Management team, the operating divisions and the Human
Resources Departments are responsible for assessing employee-related
risks; These risks mainly stem from the high levels of staff turnover that are
a characteristic feature of the engineering and consultancy industries.
A member of the general management team is in charge of developing
human resources within the Group. Working closely with all the relevant
parties, he defines the key aspects of the Group’s human resources
policy and the main priorities of annual recruitment campaigns. Our
human resources teams also work closely together in order to effectively
manage the risks relating to periods between contracts and to the
transfer of skills from one sector to another.
Because the Group has a diversified client base and works in different
business sectors it is able to satisfactorily balance the risks relating to the
markets in which it operates. In this respect, the General Management
team meets regularly to debate the changes that have occurred or may
occur in the Group’s economic and commercial environment and decide
on measures to be implemented to take them into account.
Management and operational IT systems are vital for the Group to carry
out its activities. In order to effectively deal with the risks relating to these
systems, the Group has established a series of procedures intended
to guarantee the security of systems and information as well as data
integrity and the continuity of operations. These key procedures include
a business continuity plan.
The risk mapping procedure implemented by the Group covers the
different categories of major risks to which the Group is exposed
and measures these risks in terms of impact and vulnerability (
i.e.
net exposure to risks after taking existing controls and risk reduction
measures into account).
Assystem has opted for a “top-down” approach to allow the Group’s
management to obtain an overall view of the risks to which the Group
is exposed. This overall view emerges as a result of discussions with
members of the management team and with Assystem’s key operations
and corporate support managers. The discussions are based on an
inventory of the main risk factors, an assessment of their potential impact
and likelihood of occurrence, and cover the following main themes:
●
business/operations;
●
contract and project management;
●
HR/people and skills management;
●
finance;
●
legal and fiscal compliance;
●
results and performance;
●
image and reputation.
For each of the above categories, the main risks have been identified,
defined and assessed in terms of their impact and probability of
occurrence.
The following criteria are used to assess the impact of identified risks
and lielihood of occurrence.
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ASSYSTEM
FINANCIAL REPORT
2015