Risk management at the core of our activities
Sodexo operates in a constantly changing environment and is exposed to risks that, should they occur, could have an adverse effect on its activities, financial situation and reputation. In order to make the best business decisions, protect its assets and support its strategic priorities, the Group has a proactive approach to anticipate and manage these risks.
Our risk management approach
Sodexo has put a well-defined process in place for identifying, assessing and managing risks at different levels within the organization, from its employees working in the field to its leaders (see diagram).
Measures to manage the risks identified are implemented at site, country, regional or global level depending on their nature. The progress of these action plans is monitored and reported to senior management on a regular basis.
Operational managers are assisted by transversal support functions, which define the procedures and standards and provide tools and processes to help manage risks. Internal Audit carries out an independent assessment of risk management and makes recommendations for improvement. Overall responsibility for the robustness of risk management procedures lies with the Sodexo Leadership Team, while the Board of Directors and the Audit Committee provide risk oversight, ensuring that procedures are functioning effectively.
This image presents a circular diagram with steps related to risk management in an organization. The diagram represents a circle with four successive steps illustrated by arrows. These steps are as follows:
- Identification of risks that may affect business objectives at all levels of the organization.
- Risk assessment considering the likelihood of occurrence and potential impact.
- Development of controls and implementation of risk mitigation actions.
- Review of the plans to verify their appropriateness and regularly report on their progress.
Main risks
Each year, a risk profile is established based on the risk assessments performed by senior management with regard to the main entities, and also on interviews with senior executives.
The risks considered to be the most significant for Sodexo as of August 31, 2025, are presented in this table.
Compared to last year’s risk profile, there has been a change in the risks related to staff shortages and recruitment, due to implemented action plans, and a change in current labor market dynamics
This image presents a summary table of risk levels associated with different areas of activity:
1. Clients/Consumers:
Medium Level:
- Changing of consumer expectations and behaviors.
- Bidding risks.
- Competition.
High Level:
- Client retention
2. Operations
Medium Level:
- Technology and information security
High Level:
- Client contract execution, including inflation management
3. PEOPLE
Medium Level:
- Staff shortages and recruitment.
High Level:
- Talent retention and development
4. SUSTAINABILITY
Medium Level:
- Food, services and workplace safety
- Sodexo environmental impact
5. EXTERNAL ENVIRONMENT
Climate disruption exposure
- Compliance with laws and regulations
- Climate disruption exposure