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 macro-economic scenarios, markets and investment theses

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