Groupe Renault - 2020 Universal Registration Document

95 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 01 INTERNAL CONTROL AND RISK MANAGEMENT GROUPE RENAULT GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY CORPORATE GOVERNANCE FINANCIAL STATEMENTS RENAULT AND ITS SHAREHOLDERS ANNUAL GENERAL MEETING OF RENAULT ON APRIL 23, 2021 ADDITIONAL INFORMATION INTERNAL CONTROL AND RISK 1.5 MANAGEMENT Group internal control and risk management system 1.5.1 Groupe Renault has adopted organizational structures and procedures to contain the risks inherent in its activities and to limit their negative impact. The risk management and internal control systems are implemented in all corporate functions, all activities and all regions. The main objectives are to: identify and manage risks to which the Company is exposed; P ensure compliance with rules, laws and regulations; P control quality, cost and delivery times in its activities; P ensure that financial, accounting and management disclosures are P reliable, relevant and of a high standard. These structures and procedures cannot, however, offer an absolute guarantee that the Company’s objectives will be achieved. In order to mediate between the opportunities and risks, Groupe Renault’s global risk management system aims to reduce the impact and/or probability of events having a significant influence on the control of operations or the fulfillment of objectives. The internal control and risk management systems identify and assess risks by measuring the level of risk factor control and the efficacy of management plans. The Group comprises the following operating sectors: Groupe Renault Automotive excluding AVTOVAZ, the AVTOVAZ group, RCI Bank and Services, and Mobility Services. Since 2007, Groupe Renault has taken into account the reference framework and implementation guidelines of the French Financial Markets Authority (AMF), which were updated in July 2010, and the recommendations of the Audit Committee working group report published in July 2010. This framework applies to Groupe Renault Automotive and Mobility Services Segments. The AVTOVAZ group has management autonomy and has implemented an internal control system and risk management system in accordance with Russian legislation and the organization described in this section; any variations are indicated and explained. RCI Banque sales financing has defined its own internal control framework for sales financing in accordance with banking and financial regulations. This system is outlined in section 1.5.1.4 “The RCI Banque group’s specific features in terms of internal control and risk management”. RCI Banque is subject to controls by the French Prudential Supervisory Authority (ACPR) and the European Central Bank (ECB). The various actors involved in risk 1.5.1.1 management In 2020, the Automotive division of Groupe Renault, excluding AVTOVAZ, was structured around three axes: Regions, Corporate Functions and Programs. They help set the business strategy and implement it on a daily basis: the “Regions” axis develops the business in the field. The Regions P are responsible for optimizing the business and generating profitable revenues; the “Corporate Functions” axis groups together all of the business P functions, with global responsibility. Corporate Functions define the policies, and supply the appropriate standards, methods and skills to the Programs and Regions; the “Programs” axis is responsible for the life-cycle of the vehicles P and services at a global level. Programs develop the vehicle ranges and services and manage their profitability. From 2021, this organization will change to comprise four brands and global functions. See sections 1.1.1 "Management bodies" and 1.1.3 "Strategy" for more details. This structure does not exist for the AVTOVAZ group. Sales Financing has its own internal control and risk management systems and organization, as outlined in section 1.5.1.4.