175 / 330
7
7
RISKS AND CONTROL
2. Internal control
175
SAINT-GOBAIN
- REGISTRATION DOCUMENT 2016
Internal control
2.
operations, compliance with laws and regulations, and
application of its strategy, the effective conduct of
resilience to external events as quantified in a business
Every Group company assesses the key risks affecting the
continuity plan.
Corporate Departments help to define shared common
are managed by the General Delegations. The Group
between these organizations for successful skills optimization
or IT centers. It is essential that there is a segregation of tasks
are managed by the Sectors and Activities; elsewhere, they
and transaction security. In France, the shared service centers
The entities are responsible for their own internal control and
with teams under the umbrella of the shared service centers
for managing their process risks, and work collaboratively
guidelines with the Sectors and General Delegations.
addition of computer access management and risk
and excellence in managing travel expenses. The systematic
alignment of objectives.
management helps to ensure optimum performance and
connection with balance sheet and cash flow reviews,
Priority measures, or “6 Essentials”, have been defined in
discrepancies, margin analysis and validation of sales policies,
improved competitive bidding, analysis of inventory
Internal control and risk management are matters for all
needs, under the personal responsibility of its manager.
implementing an internal control system appropriate to its
Group employees. Every entity is responsible for
MANAGEMENT SYSTEM
COMPAGNIE DE SAINT-GOBAIN’S INTERNAL CONTROL AND RISK
2.1
Paris Stock Exchange regulated market.
requirements applicable to companies listed on the Euronext
July 2010, and on the 2013 update to the framework from the
(Autorité des marchés financiers - AMF), as updated in
Commission (COSO). The system complies with the legal
Committee of Sponsoring Organizations of the Treadway
Saint-Gobain’s internal control and risk management system
framework defined by the French securities regulator
is based on the internal control and risk management
Supported by a continuous improvement process and an
internal control and risk management system is a whole set of
Internal Control Reference Framework, Saint-Gobain Group’s
company’s specific characteristics which:
means, behaviors, procedures and actions tailored to each
implementation of its strategy, the effectiveness of its
contributes to the control of its activities and the
operations and the efficient use of its resources;
financial, compliance and other risks.
enables it to appropriately address material operational,
It is more specifically designed to provide assurance
concerning:
guidelines;
application of general management’s instructions and
company;
compliance with the laws and regulations applicable to the
industrial, marketing, financial and other processes;
the efficiency and effectiveness of internal operating,
particular the prevention of fraud;
the protection of tangible and intangible assets, in
the reliability of financial information.
management system is therefore more than just a set of
The Saint-Gobain Group’s internal control and risk
processes. It is in place in all Group entities, where it
procedures and it extends beyond accounting and financial
performance.
contributes to value creation and strengthens companies’
management environment
The internal control and risk
2.1.1
system are as follows:
The cornerstones of the internal control and risk management
adherence to the values and behavioral rules set out in the
the Principles, see Saint-Gobain today, Corporate culture),
Saint-Gobain Principles of Conduct and Action (regarding
which are distributed to all employees;
clearly defined organization and allocation of
ensuring effective segregation of duties;
responsibilities, supported by written procedures and
are aligned with the effective allocation of responsibilities;
delegations of signature authority and other powers that
policies for human resources management aimed at
needed to fulfill their responsibilities and training policies
ensuring that new hires have the knowledge and skills
and knowledge;
to help Group employees expand and update their skills
manner to employees;
written internal procedures distributed in an appropriate
issued by the Group Information Systems Department.
have an obligation to comply with the basic security rules
effective segregation of duties. Saint-Gobain subsidiaries
the basis of allocated roles and responsibilities, to maintain
secure information systems with access rights granted on