Groupe Renault - 2019 Universal Registration Document

RENAULT: A RESPONSIBLE COMPANY

ANNUAL GENERAL MEETING OF RENAULT ON APRIL 24, 2020

GROUPE RENAULT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

RENAULT AND ITS SHAREHOLDERS

ADDITIONAL INFORMATION

INTERNAL CONTROL AND RISK MANAGEMENT

INTERNAL CONTROL AND RISK 1.5 MANAGEMENT

01

Group internal control and risk management system 1.5.1

Objectives of the internal control and risk management systems Groupe Renault has adopted organizational structures and procedures to contain the risks inherent in its activities and to limit their negative impact. The internal control and risk management systems are implemented in all corporate functions, all activities and all Regions. The main objectives are to: identify and manage risks to which the Company is exposed; P ensure compliance with laws, regulations and the Company’s P by-laws; control quality, cost and delivery times in its activities; P ensure that financial, accounting and management disclosures are P reliable, relevant and of a high standard. These structures and procedures cannot, however, offer an absolute guarantee that the Company’s objectives will be achieved. In order to mediate between the opportunities and risks, Groupe Renault’s global risk management system aims to reduce the impact and/or probability of events having a significant influence on the control of operations or the fulfillment of objectives. The internal control and risk management systems identify and assess risks by measuring the level of risk factor control and the efficacy of management plans. control and risk management systems Since 2007, Groupe Renault has taken into account the reference framework and implementation guidelines of the French Financial Markets Authority (AMF), which were updated in July 2010, and the recommendations of the Audit Committee working group report published in July 2010. The AVTOVAZ group has management autonomy and has implemented an internal control system and risk management system in accordance with Russian legislation and the organization described in this section; any variations are indicated and explained. 1.5.1.1 Regulatory framework of the internal 1.5.1.2

With regard to sales financing, RCI Banque has defined its own internal control framework in accordance with banking and financial regulations. This system is outlined in section 1.5.3 “Sales Financing”. RCI Banque is subject to controls by the French Prudential Supervisory Authority (ACPR) and the European Central Bank (ECB).

Deployment and organization of the internal control and risk management systems

1.5.1.3

The Group comprises three operating segments: the Automotive division of Groupe Renault, excluding AVTOVAZ, the AVTOVAZ group, and Sales Financing. The Automotive division of Groupe Renault, excluding AVTOVAZ, is structured around three axes: Regions, Corporate Functions and Programs. They help set the business strategy and implement it on a daily basis: the “Regions” axis develops the business in the field. The Regions P are responsible for optimizing the business and generating profitable revenues; the “Corporate Functions” axis groups together all of the business P functions, with global responsibility. Corporate Functions define the policies, and supply the appropriate standards, methods and skills to the Programs and Regions; the “Programs” axis is responsible for the life-cycle of the vehicles P and services at a global level. Programs develop the vehicle ranges and services and manage their profitability. This structure does not exist for the AVTOVAZ group. Sales financing has its own internal control and risk management systems and organization, as outlined in section 1.5.3 The overall control system is based on the three lines of defense represented in the diagram below:

91 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019