Investors are advised to consider all of the information provided in this Universal Registration Document, including the risk factors described in this section, before making their investment decision. The described risks are those, as of the date of this document, which the Company believes are specific to it and whose occurrence could have a material adverse impact on the Group, its business, financial position, results of operations or development.

The main risks together with the measures for managing these risks are described in section 4.1 below.

Legal and arbitration proceedings are described in section 4.2, page 81.

Measures for transferring risk are described in section 4.3, page 82.

Internal control and risk management procedures are described in section 4.4, page 83.


4.1 Risks and measures to manage the risks

The risks and threats to the Group’s business are reviewed regularly, under the supervision of the Audit and Risks Committee. In addition to the review exercises carried out each year, the Group completed a comprehensive update of its risk map in 2021, based on interviews in the various operating divisions and corporate functions, and on questionnaires sent to subsidiaries. Covering all of the Group’s regions and business lines, the exercise allowed to review how the Group’s top 50 risks were characterized and assessed. A number of criteria were analyzed, including likelihood of occurrence, financial impact and reputational impact, for the purpose of evaluating the “gross” risk (i.e., “net” of existing risk management procedures). The effectiveness of risk management procedures was then analyzed to evaluate the “net” risk materiality.

In 2021, these risk analyses were tracked by the Audit and Risks Committee, with particular attention paid to adapting action plans to changing risks.

As a result of the updated analysis, “Climate risks” have been added to the five risk categories previously on the map, as summarized below, and a new risk factor, “Transition risks related to climate change”, has been identified.

The impact and probability levels of certain risks have also changed compared with 2020, with the ranking from most to least material adjusted accordingly.

Summary table of risk factors