Exclusive Networks // Sustainability Report 2022

Risks and opportunities Internal control and risk management

2.2

Internal control and risk management

This section describes the internal control and risk management system applied within the Group in accordance with the AMF reference framework published in July 2010, which is based on national and European

legislative and regulatory provisions and international best practices and benchmarks for internal control and risk management, in particular ISO 31000.

2.2.1

Objectives of internal control and risk management

The purpose of the internal control and risk management system is to identify and analyse the Group’s main risks. Risks that fall outside the acceptable limits set by the Group are dealt with and, where necessary, addressed through action plans. These action plans may include the transfer of financial consequences (insurance mechanism or equivalent), an adaptation of the organisation, or the implementation of policies, procedures or controls by the Internal Control or Risks & Compliance department. To this end, the Group has implemented an internal control system, based on the risk management system, to identify the main risks to be controlled and to ensure in particular:  compliance of the Group’s management actions with laws and regulations;

 compliance with the Group’s seven fundamental ethical principles, as well as the instructions and guidelines set by the Board of Directors and/or Executive Management;  the proper functioning of the Group’s internal processes, in particular those designed to safeguard its assets. This includes, among other things, the application by the subsidiaries of the policies, procedures and directives that have been transmitted to them;  the reliability of accounting and financial information.

2.2.2

Organisational framework of risk management and internal control

Risk management is the responsibility of each operational or functional entity. This work is led by the Risks & Compliance department, with the participation of the Legal and Finance teams, and under the supervision of the Audit Committee.

The Audit Committee is responsible for reviewing the effectiveness and consistency of internal controls and risk management systems, under the supervision of the Board of Directors. The risk management process ensures that risks are identified and managed at all levels of the Group’s organisation.

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