HERMÈS - 2019 Universal Registration Document

CORPORATE GOVERNANCE SUPERVISORY BOARD'S' REPORT ON CORPORATE GOVERNANCE

work of the Statutory Auditors: audit approach, audit findings, s presentation of the panel’s fees (including for services other than certification of the financial statements) and statement of independence;

The details of the duties are set out in the Committee rules of procedure on pages 284 and seq . In early 2020, the risk factors described on pages 40 and seq. of this Universal registration document were presented in detail to the Audit and Risk Committee. A specific point was made on the methodology used to identify and draft these risk factors, in order to meet the requirements of EU regulation 2017/1129 and Delegated regulation 2019/980 (Annex I, section 3). Activities of the Audit and Risk Committee in 2019 In 2019, the Audit and Risk Committee dealt in particular with the following subjects: presentation of the 2019 budget; s prior approval by the Audit and Risk Committee of services other than s the certification of financial statements provided by the Statutory Auditors; security system and feedback on 2018 incidents; s audit and risk management department projection 2018-2023; s review of activities related to risk management, audit and internal s control in 2018; 2019 audit plan; s parent company and consolidated financial statements for the year s ended 31 December 2018; 2019 interim consolidated financial statements; s presentation of the consensus of financial analysts on the 2018 s annual results and the 2019 interim results; review of the press releases on 2018 revenue, 2018 annual results s and 2019 interim results;

in camera meeting with the Statutory Auditors; s establishment of new banking relationships; s

application and impact of IFRS 16; s Hermès Commercial risk mapping; s compliance: mapping of corruption risks; s Hermès Bijouterie risk mapping together with a presentation of the s social and environmental risks linked to this métier ; compliance presentation; s Group GDPR program. s As part of its missions, the Audit and Risk Committee heard from the Group Chief Financial Officer, both with regard to the accounting data and treasury data, the Consolidation Director, the Audit and Risk Director, the Group Security Director, the Group IT Director, the Group Treasury Director, the Group Financial Operations and Investor Relations Director, the Director of Hermès Commercial and his team, the Director of Hermès Bijouterie and her team, the General Counsel Compliance, the Data Protection Officer and the Statutory Auditors. The functioning and work of the Audit and Risk Committee were evaluated in 2019 as part of the three-year formal self-evaluation of the Supervisory Board (see page 248).

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2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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