Worldline - Registration Document 2016

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Risk Factors Insurance and riskmanagement

The Group also maintains policies required for regulatory reasons or to cover existing commercial premises, such as its credit risk policy, where the Group’s various entities incur specific risks. policies. The Atos group formed a dedicated reinsurance company, which it wholly owns. This reinsurance company covers the Group’s entities in respect of certain portions of the general professional liability and operational and business liability

The insured risks are also monitored by the subscription committee of the reinsurance company owned by the Atos group, which ensures that capital and technical reserves are sufficient for the risks incurred and seeks a satisfactory level of diversity in reinsurers. The committee also performs studies and analyses on a regular basis to verify the adequacy of the Group’s insurance coverage.

Riskmanagement

4.5.2

Risk management refers to the means deployed by the Group to identify, analyze and manage risks. Although risk management is part of a manager’s day to day decision making process, specific formal initiatives have been taken in respect of risk management, as summarized below.

standard approach to bid management. The objective is to ensure that the Group only bids for projects that it is capable of management process: delivering effectively and to provide an early warning system for any project that encounters problems or diverges from its original targets. The Group operates a risk management system overseen by the Atos Risk Management Committee that facilitates the analysis (in particular via identification and evaluation) and treatment (in particular via control and financing) of business risks throughout the life cycle of a project. This process is integrated within the control and approval process when entering into new contracts and continues throughout the lifecycle of the project. Specifically, the risk identifies potential exposures, including technical, legal and ● financial risks, that could have an impact during the life cycle of the project; evaluates, both qualitatively and quantitatively, the ● materiality of any such exposures; ensures that appropriate and cost-effective risk control or ● risk mitigation measures are initiated to reduce the likelihood and impact of negative outcomes on the project; and manages residual exposure through a combination of ● external risk transfer instruments and internal contingency reserves in order to optimize the resources used. The Group’s contract monitoring process has been reinforced with the introduction of a monthly “dashboard” report that provides status on financial, technology, customer, legal and supplier project KPIs. This process is managed by the “rainbow manager”, who reports to the Group’s CFO. review the most significant contracts as well as any contracts where issues have arisen. The Committee is chaired by the Group’s CFO. Permanent members of the Committee include the General Manager of the Group, the heads of the global business lines, and several representatives of support functions, including finance and legal. A Risk Management Committee convenes on a monthly basis to RiskManagement Committee

4.5.2.1

Riskmapping

The risk mapping exercise was updated in 2016 on the initiative of the Group’s management designed to identify and assess risks that may affect the ability of the Group to achieve its objectives. The methodology involved workshops and questionnaires to enable management to comment on and evaluate the main risks, their relative importance (inherent risk) and mitigation effectiveness (residual risk). The scope of the assessment covered potential risks related to our environment (stakeholders, natural disasters), business development (evolution, culture, market positioning), operations A risk mapping exercise is conducted annually, enabling detection of changes in risks year-on-year. The 2016 risk mapping exercise was performed in connection with the annual budget preparation and integrates action plans for the main residual risks designed at the Group level, with responsibilities and milestones established to ensure follow-up and completion in 2017. (clients, people, IT, processes) and information used for decision making (financial and operational).

4.5.2.2

management Business risk assessment and

Regarding business risk assessment and management, the Group has deployed the approach developed by Atos, based on the following specific processes. Atos Rainbow Atos Rainbow TM is a set of procedures and tools developed by Atos and implemented by the Group that provides a formal and

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Worldline 2016 Registration Document