Orano - Annual Activity Report 2024 66 3 RISKS, CONTROL AND DUTY OF VIGILANCE PLAN Methodology: risk mapping and risk management The Risk Management Division, in collaboration with the Risk Managers of the Business Units (each of which has a network of Risk Managers in their operating entities), coordinates the deployment of the risk mapping process, and consolidates the risk assessment at group level. The risks identified are analyzed and ranked on three axes: impact, likelihood and degree of control. By producing this map, elements of proposals and decisions can be compiled on the implementation of action plans intended to reduce risks to an ALARP (As Low As Reasonably Practicable) level. The operational units have the responsibility of identifying, analyzing and prioritizing their risks and then managing them by implementing action plans, allocating the appropriate resources and monitoring their proper execution and the effects of these action plans on risks. The Risk Management Committee coordinates, for all operations and on a worldwide basis, the analysis of the group’s key risks and the follow-up on the action plans necessary to limit those risks. As part of its mission, the Risk Management Committee makes use of all of the expertise of the group. Its composition brings together the key functional areas in the Company that can provide special expertise or knowledge, enabling it to assess the criticality of the risks and their potential consequences. The Risk Management Committee is an internal governance body chaired by the Chief Financial Officer and whose permanent members are the Risk, Compliance and Internal Audit Director, the Executive Advisor to the Chief Executive Officer, the People and Communications Director, the Customers and Strategy Director, the HSE Director, the Project Industrialization Director, the Performance Director, the DPS2D Director (Decommissioning and Waste Strategic Planning Department), the Strategy and Mergers-Acquisitions Director and the Insurance Director. Occasional members are the Business Unit Directors, the Protection Director, the Chief Legal Officer and the relevant project teams. Within the Risk Management Committee, the members of the Executive Committee (1) identify and formalize the list of the group’s major risks and appoint, for each risk, a designated member. More specifically, the latter is responsible for ensuring that there are appropriate action plans and for reporting on their progress to the Risk Management Committee. The mapping is presented annually to the Audit and Ethics Committee of the Board of Directors. Based on this work, the main risk factors identified are described in Section 3.3 below. 3.2.2 Risk coverage and insurance To limit the consequences of certain potential events on its operations and financial position, the group uses risk transfer techniques with leading insurers and re-insurers on the international markets, as well as with certain specialized mutual companies, particularly those specialized in covering nuclear risks. Orano has accordingly taken out insurance coverage for its industrial risks, its civil liability and other risks related to its operations, both nuclear and non-nuclear. The amount of the respective guarantees varies according to the type of risk and the group’s exposure. Some risk factors, were they to materialize, could be covered by one or several of the insurance policies taken out by the group as part of its insurance programs. The insurance program is led by the group’s Insurance Department, which: ● proposes to the Executive Management of the group and its subsidiaries internal financing solutions or the transfer of these risks to the insurance market; ● negotiates, implements and manages the worldwide insurance programs for the entire group and reports to group Executive Management on the actions undertaken and costs incurred; and ● steers the management of strategic claims, with the support of the subsidiaries concerned. 3.2.2.1 Worldwide group insurance programs All Orano’s insurance policies are placed with solid insurers, providing relative immunity against market fluctuations. Liability insurance Civil liability The group is covered by a “worldwide” civil liability program appropriate to its size and operations. The program covers: ● operating liability, relating to operating activities and services rendered on customer premises; ● civil liability after delivery; and ● professional civil liability, which deals with the financial consequences of damage following the provision by a group company of a service. The program covers the financial consequences of civil liability that may be incurred by operational entities as a result of their activities due to bodily injury, property damage and non-material damage caused to third parties, other than the liability of nuclear facility operators. The coverage levels for conventional civil liability insurance are based on the amounts of guarantee available on the insurance market, and the quantification of the risks reasonably foreseen by the group and identified by the operational units in particular when the annual risk mapping takes place. (1) The composition of the Executive Committee as of the date of this report is indicated in the Chapter 1 Presentation of the group in Section 1.5 Responsible and fully committed governance.
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