Compagnie des Alpes // 2020 Universal Registration Document

2 RISK FACTORS

Insurance – risk cover

Designated individuals on call 24/7 have been trained to be able to take action in the event of a major crisis, in accordance with clearly defined rules. Specific training has been provided to the Executive Committee, subsidiary managers and crisis officers.

This system enables the Group to be responsive and take quick decisions, both internally and in relation to stakeholders. It allows rapid and effective support to be provided to subsidiaries experiencing a serious incident and to mitigate the consequences, whether in terms of damage to the Group’s image or impact on its activity, at Group or subsidiary level.

2.7 Insurance – risk cover

The Group has entered into liability insurance programmes, civil liability programmes for de facto and de jure managers and property damage insurance, and cover for corresponding business interruption with leading insurance companies. All Group companies that are more than 50%-owned by the Group, or for which the Group has responsibility for insurance, are covered by 2.7.1 CIVIL LIABILITY INSURANCE Renewed on 1 October, the civil liability policy covers operating, post-delivery, and professional liability, and contains the exclusions generally applied on the insurance market. The principal sub-limits are for criminal negligence, accidental pollution, and general contracting civil liability.

these insurance programmes. In addition to these programmes, Group companies have taken out mandatory insurance policies, such as civil liability for vehicle fleets, as well as other specific policies covering areas such as construction and assistance.

The civil liability cover is supplemented with policies dedicated to Environmental Liability and Corporate Officers’ Liability.

2.7.2 PROPERTY DAMAGE AND BUSINESS INTERRUPTION INSURANCE Taken out on 1 October, the insurance policy covering property losses is an “all risks except” policy containing the exclusions generally applied on the insurance market, and principally covers risks of fire, natural disasters, breakdown of machinery, and related business interruption. The renewal on 1 October 2020, in a difficult market context, was subject to an important consultation among insurers and reinsurers, with a full investment and a leading insurer.

This programme is partly reinsured (for up to €2 million per year) by Loisirs Ré, a wholly-owned subsidiary of the Group. In conjunction with the sites and insurers, the Group revises and continuously improves its prevention policy on the basis of prevention manuals enhanced every year through feedback and regular visits by insurance brokers who make recommendations in these fields.

2.8 Internal control procedures

To constantly improve its internal control and risk management system, Compagnie des Alpes looks to the internal control and risk management procedures reference framework published by the AMF in June 2010. For this report, CDA has used the implementation guide intended for small and mid-cap companies, published in July 2010. 2.8.1 INTERNAL CONTROL PROCEDURES Internal control is a set of procedures implemented by the Group’s Executive Management, senior executives, and employees. It is designed to provide reasonable assurance that the following objectives are being met: l compliance with the current laws and regulations;

The AMF’s reference framework stresses that internal control and risk management procedures should be used in a complementary way to control the Company’s activities.

l the application of the Executive Management’s instructions and guidance; l the completion and optimisation of operations, in particular those

helping to protect the Group’s assets; l the reliability of financial information.

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Compagnie des Alpes I 2020 Universal registration document