QUADIENT - 2020 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 multiplying the average impact mentioned during interviews by the average 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 risks identified during the last risk assessment.

Strategic Risks

Legislation/Regulatory Risks

Process Risks

Financial Risks

Technologic Risks

CSR Risks

4.5

4.0

COVID-19 and global recession

Transformation

Acquisitions

3.5

Increasing business competition

Information system and cyber crime

3.0

4

Attraction and retention of talents

Tax matters

Mail volume decline

Forex interest rates, liquidity and shares

2.5

Time to market for new products

Dependence on suppliers

2.0

Avergae Likelihood

Environment

1.5

Intellectual property

New regulations

Ethical rules

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 volume

●

decline

Data privacy

●

New competition

●

Acquisitions

●

Low risks

Time to market for new products

Change in regulations

Tax

Ethics and compliance

●

●

●

●

Forex, interest rates, liquidity and shares

●

Dependence on suppliers

Environment

●

●

Intellectual

●

property

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UNIVERSAL REGISTRATION DOCUMENT 2020