2007 Interactive Registration Document - Renault

02 RISK
MANAGEMENT REPORT
MANAGEMENT
In addition to existing measures, Renault has taken the following actions to
reduce users’ exposure to product risk:
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updating undesirable customer incidents likely to endanger user safety and
identifying reasonably foreseeable use that could expose users to danger;
ensuring that engineering departments apply this list of undesirable customer
incidents to the physical objects and logical systems that could cause such
danger-exposure incidents;
defi ning a set of best practices (shared with the PSA Group) to be used in all
areas of the company, starting with engineering departments;
continuing to deploy awareness-raising and training programs in general
product safety and operational safety throughout the company;
improving risk control practices and standards on a continuous basis
throughout the product life cycle.
Renault has set up a system for responding to customer incidents:
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Renault uses various indicators, including a media watch, customer platform
and customer satisfaction surveys, to detect the fi rst customer incidents
rapidly;
after documentation, a technical analysis of incidents is performed to decide
on a preventive or a corrective response;
customer satisfaction is also taken into account in the continuous process
of product improvement.
2.3.1.3 SUPPLIER RISK
RISK FACTORS
The main risk factors are related to the quality and long-term dependability of
deliveries, the suppliers’ fi nancial situation and their compliance with regulations
and sustainable development obligations.
MANAGEMENT PROCEDURES
A – Suppliers’ financial soundness is reviewed on the basis of two key
criteria:
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a rating system based on an analysis of the suppliers’ annual report;
dependence on Renault.
If a supplier is rated negatively on any fi nancial criteria, this supplier is monitored
at monthly meetings by the Supplier Risks Committee, which is made up of
members of the Purchasing Department Management Committee, alongside the
Finance, Legal, Human Resources, Logistics and Public Affairs Departments.
The following points are regularly examined via operating performance reviews:
engineering excellence, ability to respond to demand in terms of volume, quality,
costs and delivery times, and suitability of logistics.
Suppliers’ capacity to deliver the projected volumes of parts to plants is
continually audited using the Group’s “capacity benchmarking” process.
B – The risk relating to suppliers’ failure to respect sustainable development
principles is controlled mainly by:
including a “fi lter” in the supplier selection and sourcing processes;
identifying deviations from standards (self-assessments and assessments
conducted by the Quality Department of the Purchasing Department);
setting up corrective action if a supplier falls below an acceptable level
(performance reviews).
ACTIONS AND IMPROVEMENTS
In compliance with Renault Commitment 2009, actions relating to supplier
sustainable development risk focused on the following:
in the area of labor relations, a formal commitment by suppliers to the
principles of the Renault Declaration of Employees’ Fundamental Rights
(including elimination of child labor, elimination of forced labor, and
compliance with the work, health and safety conditions described in the
Group Working Conditions Policy);
in the area of the environment, actions mainly concerned application of the
European directive banning heavy metals (Chrome 6 and lead contained
in aluminum alloys, rings and bearings). At the same time, the European
REACH legislation sets highly ambitious targets on dangerous substances.
The Purchasing Department, which is an active member of the REACH Steering
Committee, has put in place a structure to manage the actions of buyers and
suppliers (information on legal requirements and key deadlines);
in the area of risk detection (social and environmental):
70 assessments carried out by the Purchasing Quality Department
in 2007,
IT systems developed for the bulk processing of self-assessment data
through the supplier portal, from 2008.
An external audit control grid has been drawn up and approvals issued for
auditing fi rms.
2.3.1.4 PRODUCTION RISKS
RISK FACTORS
The Group’s exposure to industrial risk is potentially signifi cant because its
industrial operations are highly concentrated and its plants are interdependent.
An active formal prevention policy is applied at all production plants, covering
personal safety and the security of property.
68 Registration Document Renault 2007
Find out more at www.renault.com
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