Risk Management

Exogenous

Risks associated with shifts in external factors such as economic, political or legislative change

• Changes in financial markets, notably with regards to the volatility of share price and interest and foreign exchange rates
• Changes in macroeconomic variables (growth rates, monetary policy, inflation, commodity prices, etc.)
• Regulatory or budgetary policy changes involving, for example, tax reform or new legal obligations
• Specific developments affecting certain geographic areas (Eurozone, emerging countries, etc.)

• Geographic and sector diversification of the portfolio with differentiated cyclical exposure
• Ongoing legislative monitoring
• Systematic monitoring and analysis of macroeconomic scenarii, markets and investment thesis

Cash and cash equivalents, financial instruments and financing

Risks associated with the management of cash and cash equivalents, financial instruments and financing

• Access to liquidity
• Debt leverage and maturity profile
• Quality of counterparties
• Relevance of forecasts or expectations
• Interest rate exposure
• Developments in financial markets
• Volatility of derivative instruments

• Rigorous and systematic analysis of considered transactions
• Definition of trading limits
• Diversification of investment types and counterparties
• Strict counterparty selection process
• Monitoring of the liquidity profile and limitation of net indebtedness
• Formal delegations of authority with the aim to achieve appropriate segregation of duties
• Systematic reconciliation of cash data and the accounting