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PRESENTATION OF THE GROUP AND ITS ACTIVITIES
1.7 Risk analysis
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Registration Document 2016 — Capgemini
Risk analysis
1.7
Identification of risks
1.7.1
Audit, Ethics & Compliance, Finance, Insurance, Legal, Human
Resources and Security & Mobility Departments.
This risk analysis section was drafted jointly by several Group
stakeholders of particular note among the departments that play a
key role in identifying and controlling major risks are the Internal
The overall risk management and internal control system is
described in section 2.5 of this Registration Document.
significant negative impact on its activity, financial position or
results. The risks presented below are the result of this work
analysis.
When updating the mapping of its major risks, a process that was
launched at the end of 2015 and finalized in the first quarter of
2016, Capgemini Group assessed the risks likely to have a
Climate risk management systems are in section 3.
alliance” risks, as they are considered immaterial at Group level at
the time of preparation of this report.
Furthermore, in accordance with the latest
Autorité des Marchés
Financiers (
AMF - the French financial market authority)
recommendations on the specific nature and importance of risks
reported by issuers, Capgemini no longer reports on “Strategic
Nonetheless, it remains possible that changes in economic
conditions or the legal environment could give rise to certain risks
not currently identified as material that could impact the results of
the Group, its objectives, reputation or the share price.
Risks relating to operations and the strategy
1.7.2
such, the main risks to which the Group is exposed are (i) failure to
deliver the services to which it has committed; (ii) failure to deliver
could incur liability should it fail to do so. Furthermore, in a rapidly
changing technology environment, the Group must constantly
ensure it adapts to new client product and service expectations.
services within the contractual timeframe and to the required level
of quality; or (iii) infringement, notably through human error, of
client or third party obligations. In the course of its consulting
activities, the Group has an obligation to provide information and
Capgemini is a service provider and consulting group, and as
Economic risks
factors
The Group’s growth and financial results may be adversely
affected by a general downturn in the IT service sector or in one of
reduction measures in the business units affected.
Capgemini’s other key business segments. A shake-up resulting
in a change of ownership at one of Capgemini’s clients or a
decision not to renew a long-term contract may have a negative
effect on revenue streams and require cost-cutting or headcount
The general economic context and more precisely restrictions
affecting public bodies in the various countries subject to
budgetary efforts, may weigh on our revenues. A continued
slowdown in the activity of certain economic sectors in which our
clients operate would also limit their ability to invest and
accordingly impact the results of the Group in a certain number of
segments.
ability to attain its objectives and continue its development.
Finally, and more generally, a major crisis impacting the financial
markets or unfavorable trends in macro-economic indicators
could, due to the extent of their impacts, restrict the Group’s
anticipate, could adversely affect the Group’s business, results of
operations, financial condition and cash flows.
addition, Brexit could lead to legal uncertainty and potentially
divergent national laws and regulations as the United Kingdom
determines which European Union laws to replace or replicate.
Any of these effects of Brexit, and others the Group cannot
Union (“Brexit”). Brexit could adversely affect European or
worldwide economic, market conditions and could contribute to
instability in global financial and foreign exchange markets,
including volatility in the value of the pound sterling or the euro. In
In this respect, the United Kingdom held a referendum on
June 23, 2016 in which a majority voted to exit the European
Risk management systems
changes on its own businesses and those of its clients.
The Group monitors and anticipates, as far as possible,
macroeconomic developments at global level, by closely
monitoring the quality of the clients in the markets where it
operates, as well as analyzing the potential impacts of these
organized around medium-sized Business Units close to their
target market allows for rapid responsiveness to changes.
While a substantial proportion of the Group’s operations depends
on its clients’ investment capacity, the fact that the Group is
taken by the United Kingdom and the European Union.
The Group is going to monitor the evolution of Brexit in order to
take measures to reduce this risk depending on the decisions