NEOPOST - 2018 Registration document

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Risk factors and internal control

Risk factors

Main risks and risk management systems

Risks are classified by category: strategic, operational, legal, technological, financial and environmental. During the interviews, they are rated on a scale of 1 to 4 in terms of impact and likelihood, 4 being the highest level of risk. The risk map below represents the situation after the last risk assessment.

The horizontal axis represents the impact and the vertical axis the likelihood. The size of the circles represents the number of occurrences ( i.e. number of times the risk was mentionned during the interviews).

Data protection

3.3

Mail decline

Information systems

Forex, interest rates, liquidity and shares

3.1

Evolution of technology

Transformation

2.9

Dependence on suppliers

Acquisitions

2.7

Launch of new products

2.5

Tax

Fraud

New regulations

2.3

Competition

Attractivity, talent retention and succession plan

Average likelihood

Intellectual property

2.1

Environmental regulation

Bigger transactions

1.9

2.2

2.4

2.6

2.8

3.0

3.2

3.4

3.6

3.8

4.0

Main risks

Strategic risk

Legal risk

Operational risk

Environmental risk

Financial risk

Technologic risk

Summary of the six main risk categories

Strategic

Operational

Legal

Technological

Financial

Environmental

Highest risks

• • • • •

• •

•

Decline in mail volumes Launch of new

Transformation

Data protection

Attractivity, talent retention and succession plan

products Competition

Moderate risks

• •

• •

•

• • •

•

Evolution of technology Acquisitions

New regulations

Information

Forex, interest rates, liquidity and shares Tax

Bigger transactions

Environmental

systems

regulation

Dependence on

Intellectual

suppliers

property

Fraud

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REGISTRATION DOCUMENT 2018 / NEOPOST