TELEPERFORMANCE_Registration_document_2017

RISKS AND CONTROL

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2.3 Internal control and risk management procedures

2.3 Internal control and risk management procedures

2.3.1 Reference framework applied

The Group relied on the Reference Framework drawn up by the AMF, which was originally published in January 2007band revised in July 2010, in order to prepare this section on risk management and internal control procedures. Accordingly, the General Risk Management and Internal Control Principles contained in the Reference Framework are set out below as a summary of the system put in place by the Group. Firstly, the risk management and internal control systems are defined and their objectives set out. Then, the components of the system and the key players involved are explained.

Finally, the Application Guide included in the Reference Framework is taken into account in order to define the risk management and internal control procedures with regard to financial and accounting information published by the Group. The scope of application for the risk management and internal control procedures described below covers the parent company and all of its consolidated companies. In the event that new entities are consolidated, these procedures are systematically and progressively implemented.

2.3.2 Risk management and internal control definition and objectives

2.3.2.1 Definition of internal control The Group has adopted the definition of internal control in the AMF Reference Framework : Internal control consists of a set of resources, behaviors, procedures and actions that contribute to the management of the Group’s activities, the effectiveness of its operations and the efficient use of its resources. It should enable it to manage in an appropriate manner any significant risks, be they operational, financial or relating to compliance. The system that has been defined and implemented within Teleperformance, i.e. at the parent company and all consolidated companies, allows the Group to ensure in particular: ■ implementation of the instructions and directions given by management, following discussions and in agreement with the Board of Directors; ■ proper functioning of the Group’s internal processes, especially those relating to the protection of its assets; and ■ compliance with laws and regulations;

The definition of internal control does not cover all of the initiatives taken by the executive or management bodies, such as defining the Company’s strategy, setting objectives, making management decisions, dealing with risks and monitoring performance. Furthermore, internal control cannot provide an absolute guarantee that the Company’s objectives will be achieved (…). It cannot, in itself, prevent Group personnel from committing fraud, contravening legal or regulatory provisions, or communicating misleading information outside the Company about its situation. 2.3.2.2 Internal control and risk management Risk management and internal control systems complement each other in controlling the Company’s activities. The internal control system relies on the risk management system to identify the main risks that need to be controlled. The risk management system includes controls that are part of the internal control system. The risk management system is a component of internal control.

■ reliability of financial information.

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