6. Risk management
6.3 Risk factors6.3 Risk factors
6.3.1 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 6.2.4, each risk is assessed using impact and likelihood 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 (medium and high), as follows:
MAIN RISKS AND RISK MANAGEMENT
CLIENTS/ CONSUMERS
- Client retention
- Changing consumer expectations and behaviors
- Bidding risks
- Competition
OPERATIONS
- Client contract execution, including inflation management
- Technology and information security
PEOPLE
- Talent retention and development
- Staff shortages and recruitment
CORPORATE RESPONSIBILITY
- Food, services and workplace safety
- Sodexo environmental impact
EXTERNAL ENVIRONMENT
- Compliance with laws and regulations
- Climate disruption exposure