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REPORTS OF THE BOARD OF DIRECTORS
8
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
Medium
Between €3 M and €5 M
High
Between €5 M and €8 M
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
High
National media coverage; crisis unit involving the Group’s management bodies
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%)
Occurred once or twice in the past 5 years
Possible (between 15% and 30%)
Occurred once a year in the past 5 years
Very possible (between 30% and 90%)
Occurred more than once a year in the past 5 years
Certain (over 90%)
The risk is the result of non-compliance
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
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.
182
ASSYSTEM
FINANCIAL REPORT
2015