Fiscal 2022 Universal Registration Document

6.4.3 Risk factors

6.4 Risk management

6.4.3 Risk factors

6.4.3 Risk factors

6.4.3.1 Principal Risks and 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 four categories, 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:

MAIN RISKS AND RISK MANAGEMENT
MAIN RISKS AND RISK MANAGEMENT

CLIENTS/CONSUMERS

  • Client retention: HIGH LEVEL
  • Changing consumer expectations and behaviors: MEDIUM LEVEL
  • Bidding risks: MEDIUM LEVEL
  • Competition: MEDIUM LEVEL

OPERATIONS

  • Client contract execution, including inflation management: HIGH LEVEL
  • Technology and information security: MEDIUM LEVEL

PEOPLE

  • Talent management and development: HIGH LEVEL
  • Staff shortages and resource planning: HIGH LEVEL

CORPORATE RESPONSIBILITY

  • Food, services and workplace safety: MEDIUM LEVEL
  • Environmental impact: MEDIUM LEVEL

EXTERNAL ENVIRONMENT

  • Compliance with laws and regulations: MEDIUM LEVEL
  • Pandemic risks: MEDIUM LEVEL