INTEGRATED ANNUAL REPORT 2020/2021

1. Strategic presentation of the group

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).

 

This diagram illustrates the main strategic and financial risks of the Remy Cointreau
Group.

Ethical and regulatory risks
Legal and regulatory risks
Net impact: high
Likelihood: high

Ethics and compliance
Net impact: high
Likelihood: high

CSR risks
Sourcing
Net impact: medium
Likelihood: medium

Responsible consumption
Net impact: medium
Likelihood: high

Environmental risks
Net impact: medium
Likelihood: high

Climate risk
Net impact: medium
Likelihood: high

Market risks
Fraud
Net impact: medium
Likelihood: medium

Partners’ concentration
Net impact: medium
Likelihood: medium

Innovation and customer tastes
Net impact: medium
Likelihood of occurrence: high

Liquidity, tax and currency
Net impact: medium
Likelihood of occurrence: high

Crisis management and business continuity
Net impact: high
Likelihood: high

Market and geopolitical risks
Net impact: high
Likelihood: high

Strategy risks
Sourcing
Net impact: medium
Likelihood: medium

Governance and shareholding
Net impact: medium
Likelihood: medium
Dependence on the Cognac business
Net impact: high
Likelihood: medium

Reputational risk
Net impact: medium
Likelihood: high

Operational and industrial risks
Talent management
Net impact: medium
Likelihood: medium

Quality
Net impact: medium
Likelihood: medium

Key asset losses
Net impact: medium
Likelihood: medium

IT and digital
Net impact: high
Likelihood: high

Personal safety
Net impact: high
Likelihood: high