Fiscal 2020 Integrated Report

Identifying and managing risks

As part of its activities and the continuity of its strategy, Sodexo is faced with a certain number of internal and external risks and uncertainties. In order to address them and protect its values, the Group has created an organization and policies aimed at identifying, evaluating, preventing and managing these risks to limit their negative impact.

Operational managers are the first line of defense for identifying and managing risks in their area of activity. Support and transversal functions define the procedures and standards and provide tools and processes for operational staff to manage the risks. Internal audit makes an independent assessment of risk management and recommendations for improvement.

In the front line, operational management reports to the Executive Committee

In the second line, the support/transfer functions report to the Executive Committee.

Thirdly, Internal Audit informs the Executive Committee and reports to the Board of Directors / Audit Committee.

EXTERNAL AUDITORS/ REGULATORS 

MAIN RISKS

Each year, a risk profile is established based on the risk assessments carried out by senior management of the main entities and interviews with senior executives.

Given the health situation linked to the Covid-19 pandemic and the Group’s current situation, the risk profile has evolved this year to include a risk on the impact of this pandemic.

Thus, the following risks are considered the most significant for Sodexo as of August 31, 2020:

CLIENT & CONSUMER CENTRIC

• Client retention : HIGH
• Consumer expectations : MEDIUM
• Bidding risk : MEDIUM
• Competition : MEDIUM

OPERATIONAL EFFICIENCY

• Client contract execution : HIGH
• Technology and information security : MEDIUM

TALENT

• Talent management and development : MEDIUM
• Resource planning : MEDIUM

CORPORATE RESPONSIBILITY

• Food, services & workplace safety : MEDIUM
• Environmental impact : MEDIUM

 EXTERNAL ENVIRONMENT 

• Unpredictability of the duration and effects of the Covid-19 pandemic : HIGH
• Compliance with laws and regulations : MEDIUM