TELEPERFORMANCE_Registration_document_2017

RISKS AND CONTROL

2.3 Internal control and risk management procedures

Group information and procedures are also regularly communicated to the managers of all subsidiaries at international seminars or presentations. These rules are also reiterated at company Board meetings. Subsidiary executives are expected to communicate instructions from Group management to their employees. The heads of corporate support departments also inform their teams of specialized personnel at meetings and training sessions. Definition In the operation of its business, the Group is exposed to a variety of risks that could affect the Company’s personnel, assets, environment, objectives or reputation . Risk management objectives Risk management is a lever for anticipating the main potential threats to the Group, whether internal or external, in order to preserve its value, assets and reputation, help it achieve its targets, ensure that actions taken are consistent with Group values and rally employees in support of a shared vision of key risks. Organizational framework The risk management systemdepends on dedicatedmanagement tools, procedures and risk managers. Group management is particularly vigilant when preparing and circulating these management tools. These tools enable management as well as each subsidiary to implement the measures and procedures necessary to manage our business and prevent risks, with regard to the rules that define Teleperformance’s objectives and strategy. This monitoring process, along with the operating priorities and the management controls to be adopted with respect to the analysis of these risks, is reviewed with all Group managers, meeting together as a Group or at the time of Board meetings or management meetings. Process Key risks are identified and analyzed under 2.1 Risk factors in this section, along with the measures that can be used to limit their consequences. In addition, a formal analysis of the key procedural points for oversight related to subsidiary financial reporting was carried out in February 2017. The results of this analysis, as well as related monitoring, were presented during Audit Committee meetings in April, July and November 2017. These procedures cover the main risks identified as being liable to affect the preparation of the published financial and accounting information. This formal analysis relies on the self-assessment system implemented by each subsidiary as described in sectionb2.3.5.3. Process of preparing accounting and financial reporting. 2.3.3.3 Risk management system

2.3.3.4 Management Group management regularly monitors risk management to ensure continued improvement through the introduction of various systems and procedures. 2.3.3.5 Control activities In addition to the measures already listed in the 2.1 Risk factors section, the current section describes centralized and decentralized controls carried out in order to mitigate risks liable to affect the achievement of our objectives. Control activities are designed both by the Group’s management through centralized control procedures and by local management through decentralized control procedures. Centralized control procedures The internal control procedures centralized at headquarters cover areas common to all companies within the Group. These procedures involve finance, legal, IT and sales activities. Financial procedures Section b 2.3.5 provides details of the financial procedures related to the processing of financial information. The Group’s policy for managing foreign exchange and interest rate risks, which aims to limit these risks, preserve sales margins and control interest charges, is presented in the “Risk factors” section. Legal procedures As part of its responsibilities, the Group Legal Department oversees the Group’s compliance with applicable laws and regulations in the countries where it operates, through its local network of lawyers. It also plays a central role in monitoring changes in laws and regulations and advising the various Group entities. The Group’s Legal Department has for several years implemented a monitoring system for the trademarks used and registered by companies within the Group, and in particular a system for a worldwide monitoring of our corporate name, our domain names, the “Teleperformance” brand name and other flagship brands of the Group. The purpose is to be able to contest registrations or use of trademarks or other intellectual property rights by competitors and to avoid misuse of these assets, especially on the Internet. A procedure defining the powers of the subsidiary CEOs to commit their subsidiaries legally vis-à-vis third parties has been implemented under the supervision of the holding company’s Legal Department and the Group’s senior management. In a drive to reduce the legal risks inherent in contracts, the Group defined a series of best practices for drafting certain provisions that present a particular risk and for drafting bids in response to requests for proposals. Any departure from these rules requires specific approval from the relevant CEOs. In addition, all global contracts with clients are reviewed by the Group’s lawyers

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