Euronext - 2019 Universal Registration Document

Risk Management & Control Structure

Risk Factors

Technology

Risk Identification and Description

Potential Impacts on the Group

Risk Control & Mitigation Euronext mitigates the risks related to change and integration management by ensuring an effective project management team that closely tracks, monitors and implements projects that are in the pipeline or close to completion. The Project Management team works closely with and helps to ensure a Group-wide alignment The Company has actively arbitrated in favor of transformation and steady growth and as a result has taken on operational debt that is being continuously addressed. As a result, the incoming flow of acquisitions and integration, project developments, and regulatory obligations challenge available resources, thus the level of operational debt may not decrease as quickly as expected, which may put growth opportunities and strategy at risk. The Group’s Change agenda is ambitious. It is driven by internally determined programs, including technology transformation such as the recent completion of Optiq® and other internal IT programs aimed at delivering efficiencies and higher performance. External drivers of change and integration include the changing business and regulatory landscape, as well as the Group’s ambitious inorganic growth strategy. Technology is a key component of Euronext’s business strategy, and is crucial to the Company’s success. Euronext’s business depends on the performance and stability of complex computer and communications systems. Heavy use of Euronext’s platforms and order routing systems during peak trading times or at times of unusual market volatility could cause its systems to operate slowly or even to fail for periods of time. These events or other events could cause unanticipated disruptions in service to exchange members and clients, slower response times or delays in trade executions and related impacts. The Group finalized the transformation of its Technology organisation through its launch of Optiq® derivatives, bringing leading technology to ensure high capacity and reliability. Euronext’s success will depend, in part, on this continued innovation and investment in its trading systems and related ability to respond to customer demands, understand and react to emerging industry standards and practices on a cost-effective and timely basis,aswell as in other technologies including leveraging cloud hosting for support and future services. Third Party Dependencies Euronext depends on the services of InterContinental Exchange, (“ICE”) for the provision of network and colocation and data centre services. Equinix provides the Company with its back up network and data centre service.Euronext depends on Amazon Web Services (AWS) for selected post-trade cloud services. Risk Control & Mitigation The performance and availability of the Group’s systems are reviewed continuously and monitored to prevent problems when possible and responding, in a timely and efficient manner, when problems do occur. Euronext continuously invests in the development of its technology in order to maintain and ensure best in class service and capacity. Change and Integration Management Risk Identification and Description

Exploiting technology and the ability to expand systemcapacity and performance to handle increased demand or any increased regulatory requirements is critical to Euronext’s success. If the Group’s technology is not properly managed or the resources supporting the changes are not properly allocated, Euronext may lose market share or volumes, which could have an effect on business and financial results. In case that service failure occurs there may be significant financial losses, litigation as well as reputation damage. While Euronext actively manages its relationships with its key strategic technology suppliers to ensure continual service, a disruption of these services would negatively impact the Company’s operations and reputation depending on the severity of the disruption may have consequential impact on the Group.

2

The Group seeks to identify, manage and mitigate risks associated with third party technology risks by partnering with reputable technology and services providers, via audits of the technology, backups and business continuity arrangements its partners.

Potential Impacts on the Group

The large volume of significant internal programs and recent acquisitions, including the acquisition of Oslo Børs, VPS, in progress simultaneously, with related impacts, that, if not delivered or delivered as originally designed or with delays, may have an adverse impact on the business, culture, reputation and financial condition of the Company, including an increased cost base without a proportionate increase in revenues. In addition, the large volume of initiatives, projects and acquisitions exacerbate the need for effective change and integration management where delays in one project may extend beyond the project in question and affect the availability of resources impacting other projects further down the line.

of strategic and financial objectives. The Risk Management team actively follows projects, ensuring that the risks are understood, monitored and escalated when necessary. Governance and Managing Board oversight is determined by scale, complexing and level of impact of the change, ensuring budget and resource management, risks, issues and dependencies.

49

2019 UNIVERSAL REGISTRATION DOCUMENT