Identifying and managing risks
In its operations and while implementing its strategy, Sodexo faces a certain number of internal and external risks and uncertainties. To address them and safeguard 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 in 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 these risks. Internal audit carries out an independentassessment of risk management and makes recommendations for improvements.
This representation shows us the organisation and policies that aim to identify, assess, prevent and control these risks in order to limit their negative impacts.
At the top of the chain are the Board of Directors and the Audit Committee followed by the Executive Committee and three defense lines.
Operational management is the first line of defense and the support/transversal functions are the second line of defense, their role being to report to the Executive Committee any risks identified.
The third line of defense is internal audit, their role is to inform the Executive Committee and also to report to the Audit Committee.
Main risks
Each year, a risk profile is established based on the risk assessments senior management performs with regard to the main entities and also in interviews with senior executives. The risks considered to be the most significant for Sodexo as of August 31, 2021 are presented in the table below. The risk profile has changed this year, the risk associated with talent management and development being identified as “high” and the pandemic risk established as “medium”.
CLIENTS/CONSUMERS
- Client retention : MEDIUM + HIGH
- Consumer expectations : MEDIUM
- Bidding risks : MEDIUM
- Competition : MEDIUM
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
For more information, see section 6.4.3 of the Universal Registration Document.