PERNOD-RICARD - URD 2021-22 EN

4. Risk management Risk factors

4.2

Risk factors

In 2021, the Group carried out an in-depth review of its risk mapping, a risk management tool, in collaboration with Senior Management and the Audit Committee as well as all Pernod Ricard functions and affiliates. In the context of the health crisis triggered by the Covid-19 pandemic, a large number of mapped risks have materialised in different ways (personal health and safety, restrictive regulations on the sale of alcohol, financial risks) or have necessitated heightened vigilance (cyberattacks, supply disruptions). However, Pernod Ricard has put in place a crisis management organisation and mechanisms to better control the effects of the crisis and ensure the continuity of its operations at industrial and logistics levels throughout the world, as well as maintain dynamic management of its activity (including the management of its resources) in a very uncertain context depending on the country.

Thus, in such a context, the in-depth review carried out on the risk mapping in 2021, an exercise to identify the Group’s risks, made it possible to highlight the Group’s resilience in the face of the Covid-19 pandemic while influencing the redefinition of the contours of the main risks and their management. In addition, in 2022, a new review of the mapping was carried out by the Internal Audit Department and submitted to the Executive Board and the Audit Committee in order to adapt the risks to the current context in which the Group operates. This mapping is reproduced below to provide a visual representation of the issues, without replacing the explanatory text that follows. The different risks are classified according to their potential impact and likelihood of occurrence. This risk mapping reflects Pernod Ricard’s exposure and takes into account the control measures in place to limit the probability and impact. This mapping is reviewed annually to take into account major changes in the risk environment facing the Pernod Ricard Group.

Loss of major site/ strategic inventory Toxic contamination

HIGH IMPACTS OF RISKS

Major cyberattack

Geopolitical & macroeconomic instability Anti-alcohol environment and regulations Regulatory risks Pressure on prices & margins Climate change & environmental damage

S&R challenges

Product quality issues Health & safety

Supply chain disruptions Fast-changing consumer behaviours Financial risks (FX, interest rates, credit) Talent management Negative media coverage

Major litigation Fraud

Counterfeiting/IP rights

Pensions

LIKELIHOOD OF OCCURRENCE

HIGH

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Pernod Ricard Universal Registration Document 2021-2022