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RISK FACTORS
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4.1 Risk management and coverage
The realization of one or more of the risks presented below or the occurrence
of one or more of the events described in this section could have a significant
impact on the group’s operations and/or financial position. Unidentified risks
or risks that the group currently considers to be insignificant could also affect
the conduct of its operations.
All identified risks are monitored within the framework of the business risk
model (BRM) presented in Section 4.1 and, more specifically, in the ordinary
course of the group’s operating activities. The operating units (business units
of NewCo and AREVANP sincemid-2016) are responsible for leading the risk
management policy in close coordination with the specialized departments.
The policy involves procedures, analyses, monitoring and, whenever possible,
risk transfer to the insurance and reinsurance market. The policy for each type
of risk is presented in this chapter.
The group cannot however guarantee that the monitoring and follow-
up implemented in connection with this policy will prove sufficient in all
circumstances.
4.1.
RISK MANAGEMENT AND COVERAGE
4.1.1.
RISK MANAGEMENT
OVERALL ORGANIZATION OF RISK MANAGEMENT
AND CONTROL
The purpose of the risk management policy and insurance is to protect the group’s
operations, performance and strategic objectives.
The Risk Committee coordinates the analysis of the group’s main risks for all nuclear
and renewable operations worldwide and sets up the necessary action plans for
better control of them. Its composition secures the involvement of the principal
functions of the company, which may provide expertise or special knowledge
enabling assessment of the critical level of certain risks and their potential
consequences.
The members of the Risk Committee are:
p
the Chief Legal and Financial Officer (Chairman of the Committee);
p
the Senior Executive Vice President of Human Resources, Communication,
Property and Work Environment;
p
the Senior Executive Vice President of Customers, Strategy, Innovation and R&D;
p
the Senior Vice President of Safety, Health, Security and Environment;
p
the Senior Vice President of Insurance;
p
the Senior Vice President of Risk and Internal Audit;
p
the Secretary of the Risk Committee.
The Risk Committeemay call on expertise from throughout the group to accomplish
its mission.
The Risk and Internal Audit Department develops methodological tools to ensure
the consistent treatment of risk among the group’s different entities, assists
them in their use and promotes the exchange of best practices. The Risk and
Internal Audit Department consolidates risk assessment for the group. In terms of
financing, the Insurance Department arbitrates between retaining part of the risk
and transferring it to the insurance and reinsurance markets through the group’s
global and comprehensive policies. This specific point is developed in Section 4.1.2.
Risk coverage and insurance
.
RISK MAPPING
The principal objectives of risk mapping are to:
p
formally identify operational and financial risks;
p
characterize these risks so as to prioritize them; and
p
define and implement an action plan for managing them.
The Risk and Internal Audit Department steers this initiative by:
p
establishing a common set of methodological tools and benchmarks;
p
spearheading a network of risk coordinators deployed within the operating units.
The Risk Committee is briefed annually on the risk maps and prepares a summary
which is approved by the group’s Chief Executive Officers before presentation to
the Board of Directors’ Audit and Ethics Committee. This initiative covers the entire
consolidated group.
The group’s multiyear audit plan builds among other things on riskmapping results,
which are updated every year. The Risk and Internal Audit Department subsequently
implements this plan by conducting audits.
RISK ANALYSIS AND CONTROL
Managing risk entails, among others:
p
an ongoing and documented process of risk identification, analysis, prioritization,
optimization, financing and monitoring;
p
a broad scope covering all of the group’s activities, both operational (construction,
manufacturing, sales, projects, services, etc.) and functional (finance, legal,
contractual, organizational, human resources, etc.);
p
developing plans for business continuity and crisis management.
2016 AREVA
REFERENCE DOCUMENT
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