PERNOD RICARD - Universal Registration Document 2019-2020

4. RISK MANAGEMENT Risk factors

Risk factors 4.2 Every three years, the main risks facing Pernod Ricard are mapped for all Group affiliates and functions. They are shown below to allow readers to picture the challenges and should be read in conjunction with the explanatory texts that follow. 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. The matrix is a management tool for controlling risks. In June 2020, this matrix and, more generally, the risk environment, were analysed by Group management in the specific context of the Covid-19 crisis (impacts, measures, scenarios) in particular. The next risk mapping will take place in 2021.

Loss of major site/ strategic inventory Toxic contamination

HIGH IMPACTS OF RISKS

Cyberattack

Pressure on prices Geopolitical and macroeconomic instability Negative media/ social media campaign

Regulatory changes Climate change and environmental damage

Supply disruption Human safety risk

Brand portfolio challenges and non-adaptation to new trends (incl. inventory management) Major litigation Product quality issues

Financial risks (FX, interest rates, credit)

Pensions

Talent management Fraud

Counterfeiting/IP rights

PROBABILITY INDEX

HIGH

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