A N N U A L R E P O R T - Bouygues

RISKS
The Bouygues Group is exposed to different types
of risk in its different business areas. It is continuing
to step up its risk identification and management
policy in order to achieve its main operating
objectives.
The parent company ensures that
its main subsidiaries maintain a high
level of risk awareness.
Each year, a senior Bouygues executive
reviews the major risks to which
the Group is exposed. By analysing
and raising awareness of risks, he
actively helps to promote a culture
within subsidiaries in which risk control
is regarded as a key aspect of
management. The parent company
has also laid down guidelines for the
management of major risks which are
implemented in each business area.
Each division has set up specific risk
management bodies or structures.
They in turn take steps to introduce
risk prevention and crisis management
systems and training programmes
in order to control or reduce the
most important risks they face.
As the final element in their risk
management portfolio, subsidiaries
take out insurance policies or other
forms of risk cover in accordance with
the usual practice in their profession.
OPERATING,
ENVIRONMENTAL AND
PUBLIC HEALTH RISKS
■ Bouygues Telecom
Network technology risks
The technology needed to deliver a
mobile telephone service is by nature
sophisticated. Founded on an infrastructure
of critical interconnected
hardware components, it is at risk
from natural disaster, criminal damage
and terrorism, power failure and
other incidents of a local nature.
Network developments to offer customers
access to new services introduce
a higher probability of systems or
human error that may entail temporary
denial of service. The network
failure in November 2004 graphically
demonstrated the risks of systems
error.
A comprehensive review following
that incident has resulted in the introduction
of new protective measures,
including:
• duplication of subscriber recognition
equipment using an alternative
technology,
• securing of vulnerable points in the
optical fibre network,
• early replacement of potentially
obsolescent hardware platforms and
introduction of operational indicators
at critical points.
Information technology risks
The vast majority of operating processes
rely on information technology.
Information systems are a key factor
in the performance and automation
of critical tasks such as activation of
customer lines with the appropriate
pricing plan, call charging, invoicing,
payment collection, rapid response to
enquiries, etc. Computers optimise the
logistics chain and manage retailer
commission. The systems are interconnected
in order to optimise data
mining, forming a vast and highly
complex network. Processing capacity
must be precisely calibrated to ensure
that systems are never saturated,
while the network itself must be kept
perfectly secure to prevent fraud.
Under such circumstances, any poorly
managed change, even on a small
scale, or any unanticipated saturation
of capacity may set off a chain reaction
or open a breach in the system
that can be used to commit fraud.
In 2005, Bouygues Telecom again
reinforced and expanded its I-Réagir
information systems continuity plan,
organising applications redundancy
and database back-up and conducting
tests to assess the performance
of emergency solutions and restart
capabilities under stress.
Health risks
Mobile telephony uses radio waves
to carry communications. The press
and other media regularly echo
public concern about whether mobile
phones and radio masts are harmful
to health.
Bouygues Telecom is attentive to all
scientific developments in the field.
It encourages research and, above
all, has solemnly promised to take
account of the results of such research
by implementing any protective measures
it might reveal to be necessary.
Bouygues Telecom also believes it has
a duty to help everyone gain a better
understanding of the issues in the
debate, which is why it publishes a
brochure designed to be both instructive
and transparent. Other initiatives
include a special website
www.sante.bouyguestelecom.fr which
reports the results of new scientific
research as they are published.
Bouygues Telecom is a founder
member of the Fondation Santé
et Radiofréquences (Health and
Radiofrequencies Foundation). Created
in July 2005, the Fondation is a public
interest body whose purpose is to
define, promote and fund epidemiological,
experimental and sociological
research into the effects of exposure
to radiofrequencies and to disseminate
the results to professionals and
the public. Transparency is an essential
precondition of the precautionary
principle.
■ TF1
Operating risks
TF1’s programmes are currently broadcast
to French homes:
• by radio waves from TDF’s 112 principal
transmitters and 3,161 rebroadcast
stations,
• by satellite, using Atlantic Bird 3
for unscrambled broadcasts and
Eutelsat’s Hot Bird for TPS,
• by cable (cable operators are obliged
to carry certain analogue channels).
TDF is responsible for transmitting (ie,
feeding the TF1 signal to broadcast
sites) and broadcasting TF1’s programmes
(and those of all the other national
channels) jointly via its free-to-air
and satellite networks.
TDF is the only national operator to
broadcast television signals; there is
no comparable alternative to the TDF
network at present.
TF1 therefore depends on TDF to
broadcast its signal and cannot use
other means of transmission if TDF’s
network fails.
TDF ensures security of transmission
by using both free-to-air and satellite
networks to carry the signal to
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