Documents specifictotheAnnualGeneralMeeting
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LISI 2014FINANCIALREPORT
Riskmapping
The main risks identified in the context of the budget and strategic
planning inthemediumtermbelongto fourcategories:
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Commercial issuestobeaddressed inLISIAEROSPACE:
–– Renewalof certainmajor long-termcontractswithkeyclients in the
aerospaceandmedicalworld;
–– Theposition to takeonnewprograms to replaceexistingprograms
approachingcompletion;
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Industrialchallenges:
–– The "Screws" Plan specializingmutually the sites of Delle and Saint
FlorentsurCher;
–– Increasedmanufactureofnewproducts (alldivisions);
–– Essential productivityprograms tobe carriedout to sustain certain
industrialprocessesandmaintaincompetitiveness inhighcostareas,
sometimes accompanied by reconversion in the more attractive
segmentsofthebusiness;
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Security risks regarding the assets found on certain sites: flooding,
detectionandpreventionof fire, forwhich site relocationprojects are
underconsideration;
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Installations deemed critical for which prevention and security plans
mustbe initiated;
Deploymentofauditsoftwareandriskmapping
For Internal Audit, 2014 was a year of computerization, with the
implementation of software dedicated to the computerization of the
InternalAuditQuestionnaireaswell as riskmapping,whichhasenabled
moredirectmonitoringofaudit recommendationsand theoptimization
ofriskmapping forLISI’s41 industrialsites.
Fraud
TheLISIGrouphashad toaddressanever increasing level of attempted
fraud in 2014, as in 2013, largely consistingofmisuse of identity. In the
face of this constant threat, the alert procedure initiated in 2013 was
strengthened.Twenty-sixattempts (asagainst25 in2013)wererecorded,
someofwhichwerethesubjectofcomplaints.
Profitabilityassessmentofmajorinvestments
Aspart of theprocedure for investment commitmentsdescribed in the
internal auditmanual, audits formeasuring theachievement of criteria
(Payback and ROI) are routinely performed on a polling basis within 2
yearsafterthecompletionofmajorprojects fortheGroup.
CONCLUSION
TheGroupfindsthestandardof internalauditappropriatetothesizeand
typologyoftherisks identified.
Work to be undertaken in 2015 should allow consolidation of Internal
Auditapproach for:
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Responding to the group’s growth, integrating and standardizing as
quicklyaspossibletheauditofallentities joiningthegroup;
■■
Raisethe levelof internalauditofthosewhosescoredoesnotreachthe
groupstandardof80%;
■■
Establishing a new process of Internal Audit benchmarking, namely
Managementof informationsystems.
■■
Deploying a risk-based approach via the software program
implemented, and harmonizing its processes with all strategic and
operationalactionplans.
GillesKOHLER
ChairmanoftheBoardofDirectors
