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
W Dedicated team in charge of monitoring social media W Digital Dashboard W Detection and reaction procedures W Data Privacy W Officer and network of Data Privacy Representatives W Application of the Privacy by Design principle for Eliot products W Security audits and intrusion tests W Systematic Privacy Impact Assessment of connected products W Head of Occupational Health & Safety (OHS) and network of correspondents W Prevention policy based on international standards W Legrand’s Charter on Human Rights W Mapping of risks regarding human rights at work W Responsible purchasing W Dedicated department and network of correspondents in the Group W Limiting our Environmental Footprint: a priority of the 2014-2018 CSR roadmap W ISO 14001 and ISO 50001 certification and environmental audits W Environmental reporting in line with Grenelle 2 and the Global Reporting Index W Carbon footprint reduction plan W Group internal audit team W Internal control framework and self-assessment system W Systematic fraud reporting W “Natural” hedging of operational currency risks W Hedging of significant intragroup foreign exchange positions W Balanced geographical exposure W Ongoing monitoring and contact with the Group’s various countries W Insurance covering credit, property/casualty and repatriation risks W Group tax department and tax specialists in higher-risk countries W Use of external experts and internationally renowned firms W Tax regulation monitoring W Country-by-country reporting W Group policy in favor of non-aggressive tax strategies W Monthly review of tax expense by country W Quarterly review with country finance managers W Quarterly tax review with the Chief Financial Officer and annual tax review with the Chief Executive Officer W Multi-scenario annual budgets W Detailed monthly performance analysis W Quarterly performance review W Ensuring the accountability of managers, whose remuneration is linked to the achievement of annual targets set out in a Financial Performance Contract
Brand and reputational damage
Material
3.6.3.3
Material
3.6.3.4
Protection of personal data
3.6.3.5. Issues no. 6 and no. 7 on the CSR roadmap
Material
Employment practices
3.6.3.6 Issue no. 9 on the CSR roadmap
Environmental impact
Moderate
Financial risks
3.6.4
Failure to achieve the expected financial performance
Material
3.6.4.1
Reliability of accounts and internal control weaknesses
Material
3.6.4.2
Foreign currency risk
Moderate
3.6.4.3
Country risk
Moderate
3.6.4.4
Tax risks
Moderate
3.6.4.5
W Specific reports on trade receivables W Credit risk insurance program
Customer credit risk
Moderate
3.6.4.6
W Regular monitoring of the debt repayment schedule W Available headroom W Debt mostly at fixed rates
Financing and liquidity risk
Moderate
3.6.4.7
Value of brands and goodwill
W Annual impairment tests
Moderate
3.6.4.8
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LEGRAND
REGISTRATION DOCUMENT 2018
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