Groupe Renault - 2020 Universal Registration Document

114 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 Find out more at group.renault.com 01 INTERNAL CONTROL AND RISK MANAGEMENT GROUPE RENAULT The risk of a decrease in residual values is borne by the Group’s automotive businesses and by RCI Banque. In the specific case of the United Kingdom, RCI Banque is exposed to the residual value risk on finance where there is a commitment to take back the vehicle. At December 31, 2020, Groupe Renault’s exposure to a change in residual market values amounted to €3,336 million for the Automotive segment (net book value of vehicles) and €1,810 million for RCI Banque (value of the buy-back commitment in financing contracts). At December 31, 2019, it amounted to €3,104 million and €1,935 million respectively. Risk management Developments in the used car market are monitored closely in line with range policy, sales channel mix sale prices to reduce this risk as much as possible, in cases when the Automotive division or RCI Banque take over the vehicles. Provisions are carefully made for the loan portfolio when the observed market values have fallen below the level of the Automotive division or RCI Banque take back commitments, or if specific future risks have been identified on the used car market.