LEGRAND / 2018 Registration document
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INTERNAL CONTROL AND RISK MANAGEMENT RISK FACTORS AND CONTROL MECHANISMS IN PLACE
Risk factors
Structural risk reduction criteria and main systems in place
Criticality
Reference
Operational risks
3.6.2
W Multi-skilled team W Security masterplan W Specific governance
Cybersecurity, continuity and performance of information systems
Critical
3.6.2.1
W Centralized infrastructure management W 24/7 monitoring of critical applications W Single hotline covering the whole world W Audit of systems in place
W Talent management process W Incentives and retention mechanisms for key employees W Onboarding of new employees W Quantitative and qualitative indicators via dedicated reporting W Dedicated department and network of correspondents in the Group W Occasional recourse to experts W Use of internationally renowned consulting firms
Talent, skills management, and well-being at work
3
Material
3.6.2.2
Intellectual property
Material
3.6.2.3
W Market monitoring W Central supervision of the risk of shortages W Excess inventory or substitution plan
Availability of raw materials and components
Material
3.6.2.4
W “Creation of the Product Offering” process W Monitoring and validation meetings with General Management W Analysis of project risk and sharing of indicators
Failure in major new product launch
Material
3.6.2.5
W Systematic approach to the qualification of suppliers W Identification of critical suppliers (interdependence, financially vulnerability, risks relating to Corporate Social Responsibility) W Supplier risk mitigation approach (multi-sourcing strategy, security of supply, CSR action plan) W CSR audit of suppliers W Responsible purchasing policy – “Responsible Supplier Relations” accreditation W Limited concentration of industrial activities W Identification of risks and vulnerabilities, prevention plan W Regular investments in modernization and maintenance of industrial facilities W External audits W Worldwide insurance program covering property/casualty and business interruption risks W Map of vulnerabilities and analysis of exposed assets W Impact mitigation strategies (organizational measures and technical solutions)
Supplier default or risky practices
Moderate
3.6.2.6
Unavailability of a production, storage or logistics site
Moderate
3.6.2.7
Risks related to climate change
Moderate
3.6.2.8
Reputational and compliance risks
3.6.3
W Quality policy W ISO 9001 certification for production sites W Qualification of products by certified laboratories W Processes to monitor quality in production, W Product quality surveillance plan W Customer dissatisfaction management process W Satisfaction surveys W Product recall management procedure W Network of compliance officers in each country W Compliance program W Compliance committees at country and Group level W Guide to Good Business Practice W Competition charter W Risk and control matrix in place for each country W Ethics and fraud whistleblowing system W Training and communication plan
Material
3.6.3.1
Product quality and safety
3.6.3.2 Issue no. 3 on the CSR roadmap
Business ethics
Material
61
LEGRAND
REGISTRATION DOCUMENT 2018
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