INTRODUCTION TO SOPRA STERIA Risk management and control

Risk control procedures Attracting and retaining talent represents one of the Group’s major priorities. In order to respond to the challenges faced by the Group, various human resources procedures have been reinforced, including recruitment, strengthening relations with schools, the international mobility programme, changes to the training offering, an enhanced integration policy, a programme for identifying and supporting talent, as well as a programme to develop new skills. In 2017, the Group hired 9,500 employees, 42% of whom were under 26. The recruitment policy deliberately places the priority on hiring young graduates from engineering schools, business schools and universities. As regards the recruitment of experienced candidates, the Group encourages employee mobility and internal transfers before undertaking any external recruitment. To keep up with the rapidly evolving digital sector, the growing pace of digitisation and the transformation of our business activities and those of our clients, Sopra Steria has also developed new training programmes via the Sopra Steria Academy. Training pathways are designed to reflect and integrate the changes observed or anticipated, in particular end-to-end approaches and the need to work as a multi- disciplinary and multi-business line team. An ambitious plan of close to 16,000 days training was rolled out to enrich the offering of emerging digital technologies and methods. Various themes have been integrated and implemented, such as new working methods including shorter and collaborative development cycles, security and digital learning. The Group has also introduced new training programmes (New Skill) to allow employees to acquire new skills on a constant and regular basis. The aim of these training programmes is to guide employees’ career development and to underpin the Group’s support for and development of new skills, which is vital in a fast-moving environment experiencing tremendous change. Among other things, the organisational structure has been reinforced with Digital & Innovation Champions in order to identify, develop and unify experts around the topics of the future. Particular attention is paid to the local management team in charge of passing on the Group’s messages, accompanying change and implementing all of the actions relating to these major priorities. Lastly, a number of actions involving the Human Resources Department, the Communications and Marketing Department as well as operating

staff and managers in relation to the employer brand are in place in order to reinforce communications. All of the aforementioned HR programmes are described in the section on responsible employment practices – Chapter 3 of this Document (pages 81 to 91). Risks relating to changes in markets and competition – digital transformation risks Risk description The business activities of the Group’s clients are changing as a result of digitisation and the emergence of new rivals. Clients are seeking to become more agile, and to do so they are reinventing their business models, organisational structures and resources. As with any market developments and any strategic threat, there is a risk that the Group might not have the services, skills, resources and organisational structure to be able to address these new challenges. Like any strategic risk, this would have an effect in the medium term on the company’s performance and image. If the Group is unable to understand, satisfy and anticipate clients’ needs, an unsuitable market positioning and/ or difficulties in implementing its strategy could potentially impact its performance. Furthermore, the consulting and IT services industry remains highly competitive, with major operators both from France and abroad. Risk control procedures Risk control depends on both devising a strategy and its effective implementation. Each year, the Group performs a full strategic exercise covering all markets and sectors in which it operates. This review is performed with all activities and regions, using external studies and surveys as well as internal feedback from various parties, in particular all those in contact with clients. Following this exercise, a number of decisions are made. The implementation of actions and priorities is guided and monitored on a regular basis by the Chairman and the Group’s Executive Committee. To track advances in technology as pro-actively as possible, an organisation structure was built around Chief Technology Officers (CTOs), Digital Champions and experts within the Group and within the various vertical sectors. The goal is to plan ahead as effectively as possible for developments driven by new technology and the transformation of client industries.

9.1.2. OPERATING RISK Project execution risks The breakdown of revenue according to the nature of contracts is summarised in the table below:




(% of revenue)





Fixed-price projects Fixed-price services

19.3% 45.1% 33.0% 100%

17.1% 48.1% 32.6% 100%

17.5% 51.2% 29.4% 100%

Time and materials (including consulting services)




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