Plastic Omnium - 2020 Universal Registration Document

RISK FACTORS AND MANAGEMENT Internal control procedures and risk management www.plasticomnium.com PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 70 In the field of internal control and risk management in particular, they are responsible for analyzing the risks specific to their functions and producing the plans required for their smooth running. They produce and update the Internal Control Framework and the cross-company procedures for risk control. In doing so, they are required to ensure the adequacy of the Internal Control Framework in respect of prevailing standards, regulations and laws, and to implement the appropriate means for relaying the information they produce. Compagnie Plastic Omnium SE has a centralized Internal Audit Department that is part of the Corporate Risk Management Department and reports to the Corporate Secretary. It also reports regularly on its work to the Internal Control and Compliance Committee, which is responsible for overseeing internal control procedures. It conducts assessments of the general system and ensures the efficiency of its implementation. The Internal Audit Department conducts audits on a scope covering all subsidiaries, whether or not Compagnie Plastic Omnium SE exercises control. At the conclusion of each audit, Internal Audit makes recommendations to the audited entities, which respond with appropriate action plans subject to systematic monitoring by the management teams of the Group’s business lines. The annual Internal Audit plan is based on criteria relating to how often audits are performed and to each entity’s risk and control environment. Each new entity is audited within one year following its formation or acquisition. In 2020, Covid-19 health-related travel restrictions led the Internal Audit Department to immediately adapt its audit processes to carry out remote audits, using digital tools extensively. To carry out these remote audits, a local auditor, present at the audited sites, supplements the audit team. None of the audits performed in 2020 revealed any serious weaknesses in the internal control and risk management system. The Internal Control Department oversees annual internal control self-assessment campaigns. The questionnaire design is based on the Implementation Guide to the AMF Framework. It is both an effective assessment tool and a means of raising the awareness of local organizations. Lastly, the application of international safety, environmental and quality assurance standards, in addition to the audit of our insurance companies and our customers, gives rise to regular specialized audits conducted by independent bodies. INFORMATION AND COMMUNICATION The internal control rules and procedures are available to employees on the home page of the Group’s intranet portal. However, the internal control system is deployed largely through formal documents, awareness raising, training programs and reporting processes conducted by the Corporate Departments. These activities, which include the self-assessment referred to above, allow local management teams to appreciate senior management’s profound commitment to internal control processes. Finally, the relaying of information on the preparation of financial and accounting data is subject to specific processes described later in this report. OVERSIGHT Senior management, assisted by the Risk Management Department, is responsible for the overall oversight of the Company’s internal control and risk management processes. The Risk Management Department exercises a critical oversight role concerning the internal control system as part of its specific remit. It reports its analyses and recommendations to senior management, as well as the Internal Control and Compliance Committee. The Internal Control and Compliance Committee coordinates and oversees the internal control system, and ensures that it runs smoothly. The Internal Control and Compliance Committee is chaired by the Corporate Secretary of Compagnie Plastic Omnium SE. Its other members include the Director of Human Resources, the Managing Director and Finance Director, the Director of Internal Control, the Director of Risk Management and Internal Audit, the Compliance Manager, the Internal Audit Manager, the Managing Directors and Finance Directors of the Group’s business lines. It is tasked with ensuring the quality and effectiveness of the system. It relays the decisions and recommendations of the Chief Executive Officer, to whom it reports its findings. Its composition gives it the authority to coordinate the efforts of all actors involved in internal control and risk management in each Division or corporate function. Lastly, the Board of Directors reviews all of the major assumptions and strategies laid down for Compagnie Plastic Omnium SE by senior management. It reviews the broad outlines of the internal control and risk management system and acquires an understanding of the various procedures involved in the preparation and processing of overall and financial information. INTERNAL CONTROL RELATING TO THE PREPARATION OF THE COMPANY’S FINANCIAL AND ACCOUNTING INFORMATION BASIS OF PREPARATION OF THE GROUP’S FINANCIAL INFORMATION Concerning the preparation of the Group’s financial information and its consistency, the Finance Department has the following tasks: laying down financial and accounting standards for the Group, in ● accordance with international standards; determining the policy in respect of the preparation of financial ● information; coordinating information systems used for the preparation of financial ● and accounting data; reviewing subsidiaries’ financial information; ● preparing financial information for the Group’s consolidated financial ● statements.