7. Main characteristic of risk management and internal control systems
The Group has set up an internal control system designed to provide a reasonable assurance that (i) current laws and regulations are complied with, (ii) policies and objectives set by general management are implemented, (iii) financial and extra-financial information is reliable, and (iv) internal processes are efficient, particularly those contributing to the protection of its assets.
A reasonable assurance level means a high, but not absolute, level; any internal control system has limitations linked to human error, wrong decisions or to the choices made in terms of cost/benefit of control.
This system has five components: the control environment, a risk assessment process, control activities, information and communication, and the internal control monitoring.