THE GROUP’S MAIN STRATEGIC AND FINANCIAL RISKS

The Group has set up a system to anticipate and manage its risks. This system is constantly updated to take into account any regulatory, legislative, economic, societal, geopolitical and competition changes.

The main risk factors to which the Group is exposed given its business model are presented in this table (more details can be found in chapter 2 of this document).


PROBABILITY OF OCCURRENCE

Operational and industrial risks : Quality - medium

Market risks : Fraud - low

Operational and industrial risks : Personal safety - low

Operational and industrial risks : Talent management - low

CSR risks : Climate risk - high

Ethical and regulatory risks : Ethics and compliance - high

CSR risks : Environmental risk - medium

CSR risks : Responsible consumption - medium

Market risks : Liquidity, tax and currency - medium

Strategy risks, CSR risks : Sourcing - low

Operational and industrial risks : IT and Digital - low

Operational and industrial risks : Key asset losses - low

Market risks : Partners' concentration - low

Strategy risks : Governance and shareholding - low

Market risks : Market and geopolitical risks - high

Strategy risks : Reputation - medium

Ethical and regulatory risks : Legal and regulatory risks - medium

Market risks : Innovation and customer tastes - medium

Market risks : Crisis management and production continuity - high

Strategy risks : Dependence on the Cognac business - high