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Risks and opportunities Internal control and risk management

2.2.6

Evaluation of internal control and monitoring of action plans

managers at all levels, in application of the rules of of delegation of authority in force in the Group, the functional departments play a special role in identifying and mitigating risks by providing support to operational staff, by intervening preventively, particularly in the form of advice, by reminding employees of the importance of rules and procedures, or by carrying out reviews on the application of the rules. Monitoring of action plans Action plans are regularly monitored. In this context, meetings between the Internal Control department and the Financial Departments of the subsidiaries concerned are organised to ensure that the corrective measures defined during the review of the self-assessment questionnaire or during the review of the conclusions of internal or external audits are implemented. This monitoring may result in specific communications to all subsidiaries. For example, during the 2022 financial year, specific communication and monitoring was carried out on the mandatory double approval of payments above a certain threshold defined by the Group, as well as on the approval process for low margin deals (clarification of items to be included and excluded in the margin calculation, collection of required approvals etc.). results of the statutory audit, in particular the accounting options adopted, the audit adjustments and the significant internal control weaknesses identified during their work. The main recommendations of the Statutory Auditors on these internal control weaknesses are the subject of an action plan and a follow-up presented to the Audit Committee and Executive Management at least once a year. External audit engagements are shared between Mazars and Deloitte, the Company’s Statutory Auditors.

With regard to the risks identified and assessed, the Internal Control department defines and updates the various components of the internal control system, working in particular in close collaboration with the Group’s corporate and operational divisions. The annual self-assessment questionnaire on financial management control The Group carries out a self-assessment campaign each year within each entity to ensure that the key controls are correctly understood, performed at the defined frequency and properly documented. In this regard, a self-assessment questionnaire is sent to the Finance Directors and senior management of each subsidiary and returned to the Group Internal Control department. Based on the responses given, the Internal Control department defines an action plan in coordination with the subsidiary. These self assessments identify areas for improvement and good practices, to initiating action plans and to strengthening the internal control system. Exceptionally, the annual self-assessment campaign will take place in the first half of 2023. Over and above the annual self-assessment campaign and the hierarchical oversight exercised by operational The role of the Statutory Auditors is to certify the regularity, fairness and true and fair view of the Group’s corporate and consolidated financial statements on an annual basis and to issue a limited review report on the Group’s half-yearly consolidated statements. When performing their duties, the Statutory Auditors present the Audit Committee with a summary of their work and of the accounting options adopted for the preparation of the financial statements. When they examine the accounts, the Statutory Auditors submit a report to the Audit Committee highlighting the essential aspects of the scope of consolidation, the 2.2.7 External monitoring system

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Sustainability Report 2022