Assystem - Registration Document 2016

RISK FACTORS

LEGAL, REGULATORY AND TAX RISKS

5.4 EMPLOYEE-RELATED 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 structures by sector and business within its in-house training centre, the Assystem Institute. 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 or are being prepared 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.

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.

5.5 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.

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5.6 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.

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

The contract acceptance process systematically includes a legal and tax review. These reviews are used to ensure, in particular, that there are no terms or conditions in the contract that are unacceptable for the Group. The definitions and formal classifications of these terms and conditions are provided to all line managers. The Group has also introduced quarterly risk reports for France that are submitted to the Finance, Legal/Insurance, Accounting/Tax and Management Control Departments. Working in conjunction with operations staff, the Group Tax Department 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.

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 develop its business.

Negative impact on operating profit and/or consolidated profit.

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ASSYSTEM

REGISTRATION DOCUMENT 2016