Saint Gobain - Registration document 2016

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7 RISKS AND CONTROL
2. Internal control
176 SAINT-GOBAIN - REGISTRATION DOCUMENT 2016
process
Internal control and risk management 2.1.2
procedures. It involves four key stages:
ongoing process that integrates risk management
Within Saint-Gobain, internal control is a continuous and
analyzing the main identifiable risks; ‹
involved; in each process
developing controls that are proportionate to the risks ‹
communicating the objectives of internal control to ‹
employees and implementing controls;
effectiveness of internal control.
permanent oversight of and regular checks on the ‹
This process is described in the Internal Control Reference
Framework and applies to all Group subsidiaries.
the internal control and risk management system.
corrective action being taken, and to changes, as needed, to
Oversight controls and effectiveness checks may lead to
ORGANIZATION OF INTERNAL CONTROL AND THE RISK 2.2
MANAGEMENT SYSTEM
management down to the employees of the individual
internal control and risk management, from general
entities.
Everyone within the organization has some responsibility for
de Saint-Gobain
The Board of Directors of Compagnie 2.2.1
chapter 6, section 1).
Regular reports on the Group’s internal control and risk
being reviewed by the Audit and Risks Committee (see
management are submitted to the Board of Directors after
encountered (see chapter 6, section 1).
mission and informs the Board promptly of any issues
system. It also reviews the risks map prepared by the Internal
the effectiveness of the internal control and risk management
reports to the Board of Directors on the performance of its
Audit and Business Control Department. It provides regular
monitoring the process of preparing financial information and
The Audit and Risks Committee is specifically tasked with
Commercial Code, the Chairman of the Board of Directors
In accordance with Article L.225-37 of the French
financial statements and, if applicable, the consolidated
accounting and financial information for individual company
Directors and is made available to the public.
financial statements. The report is approved by the Board of
presents a report, once a year, on the Compagnie internal
describing the procedures for preparing and processing the
control and risk management procedures, specifically
Commercial Code, the Statutory Auditors are required to
In accordance with Article L.225-235 of the French
submit their observations on the section of the Chairman’s
preparing and processing accounting and financial
report that deals with the internal control procedures for
information (see section 3 of this chapter 7).
Group General Management 2.2.2
of the internal control process and the existence and
The Group’s general management oversees implementation
monitoring systems within the subsidiaries.
appropriateness of internal control and risk management
Department
Internal Audit and Business Control 2.2.3
The Internal Audit and Business Control Department is tasked
Delegations and the Sectors.
Group’s internal control and risk management system and
by the Group’s general management with designing the
with the Company’s corporate departments, the General
with coordinating the roll-out of the system, in conjunction
methodical assurance that the internal control systems are
The Internal Audit and Business Control Department also
performance. Its general remit is to provide systematic,
seeks to deliver added value to the Group and enhance its
reinforcing them.
relevant and effective, and to make recommendations for
system. The results of this oversight are reported to the Audit
follow-up system and the fraud and incident monitoring
and Risks Committee.
organizes oversight of internal control and risk management
The Internal Audit and Business Control Department
compliance statement, the audit results, the action plan
systems based on four principal components, which are: the
key role in the Group Compliance Program.
The Internal Audit and Business Control Department plays a