Sodexo’s risk factors may arise individually, but they can also have an effect on each other. In order to better understand the relationship between the risk factors, and to enhance overall risk resilience, a mapping of the interconnectivity of the risk factors was carried out. This mapping is show below.
The compliance with laws and regulations are interconnected with:
Pandemic risks are interconnected with:
Client retention is interconnected with:
Changing consumer expectations and behaviors are interconnected with :
Bidding risks are interconnected with:
Competition is interconnected with:
Client contract execution is interconnected with :
Technology and Information security is interconnected with:
Talent management and development is interconnected with:
Staff shortages and resource planning is interconnected with :
Food, services and workplace safety is interconnected with :
Environmental impact is interconnected with :
In carrying out its risk assessment, Sodexo also considers risks arising from changes in the external environment. This includes a consideration of emerging risks that are new external risks or existing external risks that have evolved with time, or have been triggered by changed circumstances. They may be perceived to be potentially significant, but might not yet be fully understood, and/or the consequences may be difficult to quantify.
In Fiscal 2021, we identified climate change as an important emerging risk that will impact Sodexo’s business. To underline the importance of this risk, a cross-functional Sodexo team worked with external specialists in Fiscal 2022 to better identify and analyze the risks and opportunities created by climate change.
This risk assessment was carried out using the Task Force on Climate-Related Financial Disclosures (TCFD) framework. This framework divides risks into: