Contents

Chapter 3RISK MANAGEMENTIndustrial and environmental risks 74Risks to people 74Environmental risks 75Use of chemical products, fibres and mineral content,and related discharges 75Use of energy and atmospheric discharges 75Use of water and waste effluent 75Management of waste 76Risks to goods and property 76Fire 76Flooding 76Technical breakdowns 76Business-related risks 77Risks related to the paper market 77Raw materials and energy risks 77Customer risk 78Country risk 78Incoterms 78Financial risks 79Market risk 79Foreign exchange risk 79Interest rate risk 79Liquidity risk 79Equity price risk 81Legal risks 81Specific regulations 81Links with or dependence on other parties 82Pension benefit obligations for staff in foreign subsidiaries 82Assets required for operations that are not ownedby Group companies 82Anti-trust legislation 82Claims and litigation 83Investigation into anti-trust practices 83Tax risk 83Insurance coverage 84Internal controland risk management procedures 85Report of the Chairman of the Board of Directorson internal control and risk management procedures 85The internal control and risk management system 85Charters and procedures 86Internal control initiatives 87Internal control oversight 88Financial reporting system 88Statutory Auditors’ report, prepared in accordancewith Article L. 225-235 of the French CommercialCode, on the report prepared by the Chairmanof the Board of Directors of Sequana 90~Credit risk 81Economic assumptions usedin the financial statements 81Sequana | 2012 Document de référence (English version) | 73