Areva - Reference Document 2016

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RISK FACTORS

4.1 Risk management and coverage

AREVA BUSINESS RISK MAPPING PROCESS SINCE JANUARY 2016 (1)

Top down

Audit and Ethics Committee

Validation of “Top risks” proposed by the ExComs

CEO

of the NewCo and NP sub-groups and reviewed by the Risk Committee

Coordination & follow-up Guidelines Review of “Top risks”

Risk Committee

Leadership of the process Addition of residual risks specific to AREVA SA and Group summary

Risk and Internal Audit Department

NewCo ExCom

AREVA NP ExCom

Bottom Up

NewCo Business Units

NewCo Corporate Functions

AREVA NP Business Units

AREVA NP Corporate Functions

Source: AREVA.

The first stage of the risk management process is to identify the risk using a Business Risk Model (BRM) drawn up for the use of the operating units. Working from a defined number of typical risks or families of risk (BRM risk), the model lists all of the foreseeable or fortuitous situations or events which may have an impact on employee safety, on the financial performance of the business unit, of the subgroup or even of the group, as well as on its corporate image. The BRM evolves by incorporating best practices and lessons learned.

RISK MANAGEMENT RELATED TO THE GROUP’S INDUSTRIAL OPERATIONS In terms of regulation, industrial facilities operated by AREVA are categorized by level of risk and the quantity of nuclear material or chemical substances present. In addition to the means of preventing and countering acts of malfeasance and actions to ensure public safety in the event of an accident, the industrial safety of the facilities consists in particular of: p protecting employees, members of the public and the environment from the harmful effects of radiation and chemicals; and p defining and implementing measures designed to prevent accidents and limit their impacts.

The establishment of the risk map is the time for collecting recommendations and decision-making components concerning the implementation of action plans designed to optimize the management of each risk and render the residual risk acceptable to the group. The operating units are responsible for identifying, analyzing and prioritizing their risks, and for managing themby implementing action plans using appropriate means. In each business unit, the riskmanagement coordinators provide their management with a cross-business picture of risks and of how the sites and entities are managing them. The Risk Committee is then informed of the status of action plans and decides which risks affect the group’s strategic objectives. The group’s commitment to transparency in riskmanagement is shown in particular through the publication of environmental monitoring results for the principal sites and more generally through the implementation of its Nuclear Safety Charter. A measurement and reporting protocol frames the calculation and measurement of sustainable development indicators published by the group. The operating units, supported by AREVA’s specialized departments, manage risks related to nuclear safety, the environment and the physical protection of AREVA’s facilities, under the regulatory oversight of national and international authorities.

(1) For the 2015 mapping process, see the 2015 Reference Document, Section 4.1.1.

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2016 AREVA REFERENCE DOCUMENT