QUADIENT - 2019 Universal Registration Document

RISK FACTORS AND INTERNAL CONTROL Risk factors

4.1.2

MAIN RISKS AND RISK MANAGEMENT SYSTEMS

Risks are classified by category: strategic, operational, legal, technological, financial and CSR/extra-financial. 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. Risk values are expressed in net value knowing that they have been rated in terms of impact and likelihood after taking into account management systems to mitigate them. 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 risk value that is calculated by multipling the average impact mentioned during interviews by the avarage likelihood and by the number of occurrences ( i.e. number of times the risk was mentioned during the interviews). The graphic below presents the top 16 riks identied during the last risk assessment.

Strategic risk

Legislation/regulatory risk

Process risk

Financial risk

Technologic risk

CSR risk

4.5

4.0

COVID-19 and global recession

3.5

4

Time to market for new products

3.0

Information system and cyber crime

Mail decline

Transformation

Acquisitions

2.5

Tax matters

Attraction and retention of talent

Forex interest rates, liquidity and shares

Data privacy

Average likelihood 2.0

Dependence on suppliers

Increasing business competition

New regulations

1.5

Intellectual property

Environment

Ethical rules

1.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Average impact

Summary of the six main risk categories

Strategic

Operational

Legal

Technological

Financial

CSR/ Extrafinancial

High risks

COVID-19 crisis and risk of global recession

Transformation

Information

Attractivity,

●

●

●

●

systems and cybercriminality

talent retention and succession plans

Mail decline

●

Data privacy

●

New competition

●

Acquisitions

●

Low risks

Time to market for new products

Change in regulations

Tax

Ethic and

●

●

●

●

compliance

Forex, interest rates, liquidity and shares

●

Dependence on suppliers

Environment

●

●

Intellectual

●

property

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UNIVERSAL REGISTRATION DOCUMENT 2019