2007 Interactive Registration Document - Renault

02 RISK
MANAGEMENT REPORT
MANAGEMENT
2.3.1.6 INSURING OPERATIONAL RISKS
At the Renault group, insurance for operational risks has three facets:
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high-impact low-probability risks are transferred to the insurance and
reinsurance markets;
common risks that are statistically known and fi nancially coverable are
provisioned by the Group, unless there is a legal requirement to insure
them;
the Group negotiates global insurance policies that provide Group-wide
cover.
The majority of the Group’s entities are covered by these global insurance
policies. Their ceilings are high – up to €1.5 billion. Deductibles – which must
be paid by the Group before the insurance companies pay for any loss – are
also high. The highest deductible amount is €24 million per claim. Some risks,
such as defects covered by the manufacturer’s warranty and recall campaigns,
are not covered by insurance.
The reason for keeping deductibles high include the Group’s consistent policy
of prevention, the fact that there have been no major claims in recent years,
and a desire to make each risk-bearing sector more accountable. No major
change to Renault’s insurance strategy is planned for 2008.
2.3.1.7 IT RISK
RISK FACTORS
Renault depends on the orderly operation of its IT systems. Most of the Group’s
functions and processes rely on the software tools and technical infrastructure
connecting its sites.
The main risks dealt with by the Group are:
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interruption of IT services, regardless of the cause;
confi dentiality and integrity of data.
Within Renault’s Information Systems Department (DSIR), the Networks and
Telecoms Security Department is leading the program to reduce IT risks and
implement the IT security policy.
MANAGEMENT PROCEDURES
Risks are controlled through:
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committees and management charts that serve to check application of IT
security procedures in line with international best practices (policies and
standards such as ISO 27001);
security approval for the Group’s main projects, interconnections and
technical upgrades to ensure that appropriate security mechanisms are
adopted (classifi cation of security needs, standardization of solutions);
a monitoring plan whose results are presented and submitted for approval
to representatives of senior management, the departments using IT, the
Audit Department and the Group Risk Management Department. Depending
on the subject, audit assignments and IT surveys are conducted in-house
by the IT Department with the Group Protection and Safety Department, or
independently by the Audit and Risk Management Department;
an IT Risk Committee, organized by the IT Department under the management
of the Audit Department and the Risk Management Department and with
representatives of other corporate departments.
ACTIONS AND IMPROVEMENTS
The main security programs implemented in 2007 sought to:
extend deployment of the security policy defined in association with
Nissan;
deploy security measures that refl ect the new issues raised by the Group’s
international expansion and partnerships (access management and
confi dentiality) ;
increase user awareness of security issues at international level;
reinforce the security and emergency resources and procedures in place at
the Group’s main IT centers.
Projects planned for 2008 will continue in the same line and further develop
the existing coordination and protection systems, based on the aims of Renault
Commitment 2009.
2.3.1.8 DISTRIBUTION RISK
RISK FACTORS
The type of risks to which Renault is exposed depends on the type of product
distribution channel involved:
at commercial import subsidiaries, the main risks are related to the use of
sales and marketing resources;
at its own distribution subsidiaries, grouped under the umbrella of Renault
Retail Group (formerly REAGROUP), Renault’s risks are primarily related to
decentralization and the diversity of these entities;
the fi nancial situation of dealership networks is also a source of risk.
Another risk related to the Group’s commercial activities is customer default.
70 Registration Document Renault 2007
Find out more at www.renault.com
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