technicolor - 2020 Universal Registration Document

RISKS, LITIGATION, AND CONTROLS RISK FACTORS

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EVOLVING LEGAL COMPLIANCE AND ETHICS

GRI [103-1 Socioeconomic compliance] [103-2 Socioeconomic compliance] Risk identification The Group operates in a large number countries, and has to deal with various and complex regulations. The laws and regulations to which the Group may be subject include general business practices, competitive practices, anti-corruption, handling of personal data, consumer protection, corporate governance, employment laws, local and international tax regulations and export compliance for high-tech products. Any major change in these laws and regulations could impact the Group’s businesses. In addition, without a defined and strong Governance framework (updated Group policies, communication, and training), we could be exposing the Group to further liabilities. Despite its best efforts, the Group may have to face proven or unproven allegations that it has failed to comply with national or international regulations, and this could have a negative impact on its reputation, growth outlook and financial performance. In addition, any major change in these laws and regulations could impact the Group’s businesses.

Risk monitoring and management

To limit its exposure to such risks, the Group develops Compliance programs to cover issues common to its businesses. These program updates are reviewed with the Board of Directors. Under the control of Management and through the actions of the Compliance Officer, the Group seeks to constantly improve its programs and employee awareness initiatives and to put in place procedures for preventing and handling potential risks in this regard. Moreover, the Company audits its subsidiaries around the world on a regular basis and consults outside experts to validate compliance with applicable regulations, in various aspects of its operations. Technicolor conducts a compliance approach across the Group, building on its Code of Ethics and culture of integrity. This compliance program sets down general rules and procedures that must be respected by all employees and entities, on the basis of which a series of business specific and as applicable, local procedures are then defined. These procedures are translated and adapted in line with local regulations and culture. In 2018, the Group updated and improved its existing Code of Ethics.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020