Worldline - 2020 Universal Registration Document

RISK ANALYSIS Risk management activities

This assessment covers potential risks related to: The financial performance; ● Risks related to operations, including the delivery of ● services and products, employees, the performance of internal systems, security and safety; Compliance with applicable standards and laws; and ● Strategy and Corporate Social Responsability. ●

This recurring process allows identifying evolutions from one year to another. Improvement plans for the main residual risks are designed at local and Group levels, with assigned owners and milestones/timelines for follow-up and completion. Results are shared with Group Executive Committee and local management, to ensure that appropriate measures are deployed to manage the main risks, and are presented to the Audit Committee and the Board of Directors.

F.1.2

Business & Operational risk assessment and management

Regarding business & operational risk assessment and management, the Group has deployed the approach based on the following specific processes.

Worldline operates a risk management system that facilitates the analysis and treatment of business risks throughout the life cycle of a project. This process is integrated with the control and approval process when entering into new contracts. The objective is to ensure that Worldline can effectively deliver and to provide an early warning system for any project that encounters difficulties or otherwise diverges from its original targets. Product development and internal projects are governed by the RAPID process, which also provides the approach and tools for risk management in this area. RAPID process validates the level of investment required, the alignment with market target and the Group’s commitment on internal project or product development. Worldline operates equally a risk management system that facilitates the analysis and treatment of risks throughout the life cycle of the internal project or product. The Group ARROW manager reports directly to the Group Chief Financial Officer. Risk management organization F.1.2.3 The Group Risk Manager is part of second line of defense, is responsible that risks in bids, contracts, projects, operations and support functions are identified, assessed, mitigated and monitored within the organization. He is also responsible for maintenance of risk framework and methodology and escalates of material risk matters to Risk Management Committee and Audit Committee. Risk Managers of each entity, as part of second line of defense and at their respective level are owning the risk management process, including the process objectives, process description and the related tools. They are promoting risk management’s importance through the organization, are providing the necessary training to staff and management, are challenging the relevance, meaningfulness and completeness of risk registers and are advising management on treatment of risks and are escalating risks not appropriately addressed.

Operational Risk Management (ORM) Operational risk management is implemented in entities, departments and practices throughout the organization. Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, systems or people, or from external events. More broadly, it is the risk that may affect Worldline’s ability to execute its business plan. Operational Risk Management is a bottom-up approach based on following principles: Regular Operational Risks Assessment; ● Performed through workshops with the local management ● and experts; Allows identifying risks and associated action plans; ● Consolidated at Group level quarterly and presented to ● senior management. All employees regardless of their role within Operational Risk Management (ORM) will receive a minimum level of information to ensure embedding of ORM into day-to-day operations and management processes. F.1.2.1

F

Projects, Bids & Contracts F.1.2.2 risk management

Risk management, focusing on business risks, is relevant to, and is executed in bids, in contracts (from handover to expiry) and in internal projects across the whole organization. Worldline ARROW is a set of procedures and tools that provides a formal and standard approach to bid execution.

Universal Registration Document 2020

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