Compagnies des Alpes // 2019 Universal Registration Document

2 RISK FACTORS Strategic risks

This dual approach (bottom-up and top-down) thus increases the e ffi ciency of the Company’s risk management process and short/ medium/long-term visibility on its objectives. Through an analysis conducted by the Risk, Insurance and Crisis Management Department, each risk de fi ned in the interviews is assessed in terms of fi nancial, human and intangible impact, as well as the likelihood of its materialisation, and the potential improvement margin with respect to its management. The risks are classed into five categories: strategic, operational, human, regulatory and fi nancial.

Through several risk-ranking workshops with the Executive Committee, a risk priority matrix has been de fi ned, laying down a list of 12 priority risks and thus validating the new risk map (set out below), showing the probability of occurrence of the risks, their impact, and their priority level (1 or 2). The Group’s key risks are classed into 4 categories: l strategic risks, l operational risks related to its activities, l human risks, l regulatory and compliance risks.

Risk category Strategic risk Strategic risk Strategic risk Strategic risk

Group risk

Probability

Impact Critical Critical Critical

Priority

Change in leisure consumption habits The current real estate market Impacts of climate change Change in the competitive environment

Possible Possible Possible Possible Possible Possible Frequent Possible

Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 2 Priority 2 Priority 2 Priority 2 Priority 2

Signi fi cant

Operational risks Operational risks

Cyber attack – cyber risk

Highly critical

It system failure

Signi fi cant Signi fi cant

Human risk

Human resource shortage Security – safety of the sites Bodily injury to customers

Operational risks Operational risks

Highly critical Highly critical Highly critical Highly critical Highly critical

Rare Rare Rare Rare

Human risk

Personnel safety

Regulatory and compliance risk Regulatory and compliance risk

Non-compliance with regulations

Loss of major public service concession

l with a view to transferring the risk of fi nancial loss to insurance companies, for insurable risks. To monitor these priority risks over several years, several indicators have been de fi ned for each of them.

For each of these key risks, ranked in order of priority and impact, risk management measures have been de fi ned: l with a view to prevention, to attempt to reduce the likelihood of the risk arising; l with a view to protection, to limit the impact on the Group;

2.2 Strategic risks

2.2.1 RISKS LINKED TO CHANGING LEISURE CONSUMPTION HABITS The development of winter sports resorts over the past 50-plus years has enabled an ever broader clientèle to discover the pleasures of the mountain and skiing. The Group is engaged in promoting and distributing new o ff ers to customers.

on the digitalisation of its marketing, in particular through its subsidiary Travelfactory, providing better control of distribution channels. Furthermore, Compagnie des Alpes o ff ers a variety of non-ski activities, thus broadening the range of leisure activities o ff ered to customers. In addition, Compagnie des Alpes is continuing to improve its ski lifts, o ff ering greater comfort for greater customer satisfaction.

Compagnie des Alpes supports numerous initiatives to promote mountain tourism in the summer. Moreover, the Group has embarked

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Compagnie des Alpes I 2019 Universal registration document