Fiscal 2021 Universal Registration Document

6. Corporate governance

6.4.3 Risk factors
6.4.3.1 Principal Risks & Risk Management Measures
Summary of Sodexo’s Principal Risk Factors

The summary table of Sodexo’s principal risks shows a classification of the risks by reference to the pillars of Sodexo’s Strategic Agenda, as well as risks from the external environment. As outlined in 6.4.2.4, each risk is assessed using impact and probability to give an evaluation of the inherent risk, and then a third criteria “level of control” is used to evaluate the overall net risk. The table below shows the net risk assessment. The most significant risks are presented at the top of each category, and the materiality of each risk shown is using a two-level rating scale, as follows :

RISK MANAGEMENT AND MAIN RISKS
CLIENTS/CONSUMERS
  • Client retention : MEDIUM + HIGH
  • Consumer expectations : MEDIUM
  • Bidding risks : HIGH
  • Competition : HIGH
OPERATIONAL EFFICIENCY
  • Client contract execution : MEDIUM + HIGH
  • Technology and information security : MEDIUM
TALENT
  • Talent management and development : MEDIUM + HIGH
  • Resource planning : MEDIUM
CORPORATE RESPONSIBILITY
  • Food, services and workplace safety : MEDIUM
  • Environmental impact : MEDIUM
EXTERNAL ENVIRONMENT
  • Pandemic risks : MEDIUM
  • Compliance with laws and regulations : MEDIUM