Econocom - 2020 annual report

05 management report

corporate governance statement

COORDINATION OF 5.3.2. REPORTING AND CONSOLIDATION The accounts are consolidated by a dedicated team on a quarterly basis. The consolidated companies send their detailed financial statements via the consolidation tool for inclusion in the consolidated financial statements. Each entity ( i.e. , company or business unit) draws up a budget. Profit forecasts are adjusted several times during the year and are monitored on a monthly basis based on the activity reports provided to Group Management. These reports are drawn up jointly by the Head of Operations and the Financial Controller of the entity. The Group’s Financial Controlling draws up schedules and specific instructions for the various budgets, reports and the items needed for the purpose of consolidation. ACCOUNTING STANDARDS 5.3.3. AND MONITORING The Group’s accounting principles are set out in an accounting principles manual which is used as the basis for preparing financial information. This manual describes the method for recording transactions and presenting financial information. The team in charge of consolidation is also responsible for keeping abreast of changes to IFRSs. IT SYSTEMS 5.3.4. The Information Systems Department oversees the various information systems used by the Group. It ensures the gradual harmonisationof the solutions implemented and the continuity of operations. In the preparation of financial information, informationflows from IT tools specific to the various businessesare centralised in a single accounting management and reporting solution.

Following the security attack suffered by Econocomin the autumn of 2020 on part of its own infrastructures and despite the low impact of this attack on the Group’sbusiness (see latest information note published on 7 January 2021 on the Group’s website, News/Publications section), the Information Systems Department took the necessary technical and legal measures to remedy the incident, mitigate the risks and protect the interests of stakeholders by alerting the competent authorities. In addition, the InformationSystems Department constantly endeavours to increase the security of the SURVEILLANCE AND MONITORING The monthly reports enable the various operational and financial managers and the Group’s Management to verify that the Group’s results are accurate and consistent with the targets set. At the end of each month, they contain a comparison between the management data and the Group’s consolidatedfinancial statements in order to ensure that the financial information is reliable. The Group’s Internal Audit Department (outsourced)completesthe risk organisation, and is in charge inter alia of drawing up a risk map. It also reviews the subsidiaries’ financial statements in order to ensure that they comply with Group rules, and verifies that the reports are accurate and that risks are adequatelycovered. The Group’s Internal Audit Department reports directly to the Chairman andthe Audit Committee. When identifying risks that may impact the achievement offinancial reportingobjectives, Group Management takes into account the possibility of misrepresentations and fraud, and undertakes the required actions to strengthen internal control, if necessary. The Internal Audit conducts specific audits, on the basis of the assessmentof potential fraud risks, in order to avoid and prevent fraud. Any findings are systematically reported to the Audit Committee. Group’s ITinfrastructures. RISK FACTORS, 5.3.5.

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2020 annual report