Assystem - 2018 Register document

RISK GOVERNANCE AND MANAGEMENT

RISK FACTORS

2.2.4

HR RISKS

Type

Impact

Risk reduction measures

Risk that the Group’s available skills do not match client and market requirements.

Negative impact on the Group’s image and revenue.

The Group devotes significant efforts and resources – in terms of management time, employees’ working hours and cash – to continuously training its engineers and has developed dedicated training structures by sector and business. Skills reviews are conducted annually for all engineers, which help detect any training requirements for acquiring new skills or honing existing skills. In addition, annual recruitment campaigns specifically target the competencies required for successfully carrying out the Group’s current and future projects. Key persons are identified within each of the Group’s operating entities as well as in its head office and support functions. Succession plans have been drawn up for all of these key persons. In addition, the measures taken to ensure the continuity of the internal control system and the continuous improvement approach of which this system forms part are notably aimed at ensuring the continuity of the Group’s processes and operations independently of the persons in charge of them, thus decreasing the risk of dependence on key persons.

2

Risk of losing key skills needed for the Group to be able to operate and develop.

Negative impact on the Group’s image and revenue.

2.2.5

RISKS RELATED TO INFORMATION SYSTEMS

Type

Impact

Risk reduction measures

Risk that data is not available or is corrupted.

Inability to pursue projects, negative impact on the Group’s image and revenue.

In view of the Group’s high dependence on information systems (for the performance of client projects as well as for its own requirements) and the decentralisation of the IT function, risks related to information systems are closely scrutinised. Business continuity and recovery plans have been drawn up and tested in all operating units. Access to information systems is also strictly controlled, especially for employees who use remote access (although the number of these employees is limited). Lastly, access to restricted client areas (engineering platforms installed on Group premises) is strictly controlled in line with clients’ security policies.

2.2.6

LEGAL, REGULATORY AND TAX RISKS

Type

Impact

Risk reduction measures

Risk of lack of control over the legal and tax aspects of the Group’s business and operations in a context of globalisation, and lack of regulatory compliance. Risk that changes to French or foreign tax regulations, or their interpretation by the relevant authorities, may be contrary to the Group’s interests or may restrict the Group’s ability to organise or conduct its business.

Negative impact on the Group’s image and operating profit.

The bid and project review process includes a legal and tax review. These reviews are notably used to ensure that there are no legal terms or conditions that are unacceptable for the Group. The definitions and formal classifications of these terms and conditions are provided to all line managers. Working in conjunction with operations staff, the Group Tax Department continuously monitors any changes in tax regulations, and their corresponding interpretations, that are of relevance to the Group. Where necessary, it suggests ways of adapting the Group’s organisational structure and its operations in order to mitigate the impacts of such changes.

Negative impact on operating profit and/ or consolidated profit.

ASG legal dispute ASG was previously involved in a legal dispute with Acergy (since renamed Subsea 7) and Iska Marine concerning a fire that occurred in January 2010 on Board a ship – the Acergy Falcon – which was dry- docked in Brest for maintenance at the time. This dispute has now been settled by way of an agreement signed between the parties on 1 April 2019. The amount of the settlement is wholly covered by Assystem’s professional liability insurance policy, except for a €0.1 million deductible for which a provision had previously been recognised.

TAX AUDIT France

In late 2014 Assystem SA received notification of a €13.5 million tax reassessment relating to research tax credits recognised by its former subsidiary Assystem France (which is now and Expleo Group subsidiary) for 2010, 2011 and 2012. Assystem considers that this reassessment is based on a general position taken by the French tax authorities which is applicable, with no real grounds, to all of the French companies concerned and which Assystem is disputing in full.

29

ASSYSTEM

REGISTRATION DOCUMENT 2018

Made with FlippingBook - Online Brochure Maker