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PRESENTATION OF THE GROUP AND ITS ACTIVITIES
1.7 Risk analysis
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Registration Document 2016 — Capgemini
Clients
Risk factors
strategic information and is not communicated.
Capgemini serves a large client base, in a wide variety of sectors
and countries, limiting the risk of dependency on a given sector
and/or market. The Group’s biggest clients are multinationals and
public bodies. The detailed list of the Group’s biggest clients is
The contribution of the Group’s main clients to Group revenues
(as a percentage of total revenues) is as follows:
2016
Top five clients
11%
Top ten clients
16%
Risk management systems
security in the conduct of business.
The management of client risk is facilitated by the fact that the
Group controls the international development of its activity by
focusing on countries offering sufficient guarantees in terms of
business ethics, the safety and security of individuals and legal
In addition, for existing clients, the Group is exposed to standard
client risks which are closely monitored:
sectors. The client portfolio consists of both a large number of
entities from the public sector and a large number of entities
from the private sector, from a wide spread of diversified
markets. Exposure to risks of commercial dependency is
the risk of excessive dependence on a single client or group of
◗
clients or a single market sector; the Group has several
thousand clients, which to a certain extent enables it to resist
market turbulence and reduce its exposure to volatility in certain
therefore limited;
clients, helps reduce credit risk;
client insolvency; client solvency analysis upstream of the sales
◗
process helps minimize client credit risk. The solvency of these
major clients, combined with the wide diversity of other smaller
throughout the project, known as OTACE (On Time and Above
Client Expectations). This is a key pillar of the Group’s client
loyalty policy, particularly for major client accounts.
the risk of dissatisfaction; Capgemini pays particular attention to
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assessing client satisfaction and has implemented a rigorous
client relationship management process that it carries out
Operational risks
1.7.3
Project performance
Risk factors
contractual commitments given by the Group to its clients,
is a commitment to provide a certain level of service.
outset. This may result in cost overruns not covered by additional
revenues, especially in the case of fixed-price contracts, or
reduced revenues without any corresponding reduction in
expense in the case of certain outsourcing contracts where there
suppliers and sub-contractors, difficulties with respect to project
performance and/or project costs may be underestimated at the
Despite the formal review and approval procedure for all
More generally, the Group could be unable to control changes in
its cost base, materially impacting the overall profitability of its
operations.
error, omissions, and infringement of internal or external
regulations or legislation that are not, or cannot be identified in
time, may cause damage for which the Company is held liable
and/or may tarnish its reputation.
Despite the stringent control procedures that the Group applies in
the project performance phase, it is impossible to guarantee that
all risks have been contained and controlled. In particular, human
Risk management systems
external certification of its Business Units (CMM, ISO, etc.).
high quality performance of client projects. Project managers
receive specific training to develop their expertise and obtain
certification levels consistent with the complexity of projects
entrusted to them. The Group continues its active policy of
The Group has developed a range of methods, organized and
documented in its DELIVER methodology, in order to ensure the
Support Department, specialist teams of experts audit projects
considered high-risk or facing performance difficulties.
procedures. At the initiative of the Production/Methods and
as “complex” subject to more specific controls. Internal Audit also
verifies the application of project management and control
Project performance monitoring satisfies the management and
control procedures defined by the Group, with projects classified
risks associated with the delivery of information systems projects
ordered by clients, from pre-sale to acceptance and payment by
the client of the last invoice for the project. In a simplified
approach, this process differentiates between:
The Group has devised a formal process to identify and control
pre-sale risk controls;
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production and quality controls during the project performance
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phase;
business control.
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1. Pre-sale risk control
existing contracts. This risk analysis is based in particular on:
commitments, sometimes involving transfers of assets, staff and
the related obligations). As a result, identifying and measuring the
risks involved is essential at all stages of the selling process, not
only for new contracts but also for extensions or renewals of
Projects are increasingly complex, both in terms of size and
technical specifications, especially in Outsourcing (long-term
entered as and when identified, and updated throughout the
sale process;
a reporting tool consolidating all commercial opportunities at
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Group level. Data concerning commercial opportunities is