Universal Registration Document 2019

139 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Risk factors 5 Close cooperation with our insurers The consistency of the relationship with insurers and risk classification has helped to structure the Group’s prevention approach. Thus, all of the insurers’ recommendations regarding damage to proper ty are included in the Environmental Safety Improvement Plans and are subject to periodic monitoring by the Risk Monitoring Committee. Our insurers conduct audits at a number of facilities each year, looking both at damage to assets and environmental risks, before presenting their recommendations which enhance our action plan. Since 2002, all the significant sites were audited several times. On some of its sites, the Group has had to carry out construction work or install major prevention systems to limit the potential for incidents as much as possible. This initiative of ongoing progress improves the Group’s prevention policy, avoids major incidents and optimizes insurance premiums. Drawing up action plans The safety/environment/prevention action plans drawn up within the Group ensure a consistent approach to risk identification, risk prevention, asset preservation and control of operations. The program is coordinated by the head company of the LISI Group in the areas of HSE, internal controls, finance and cash flow management. 2  /  Insurance policy The LISI Group has several insurance policies, which mainly cover the following risks: ■ Property damage insurance As of January 1, 2019, this policy covered own and others’ installations, aswell as operating losses in the event of a claim. The sums insured are €1,651million for buildings, €293million for goods and €846 million for operating losses. The amount per claim is limited to €120 million. ■ Third-party liability insurance This covers personal, physical and intangible damage that might occur during operations to the sum of €60 million, as well as damages that occur after delivery, to the sum of €50million per annum in primary coverage across all divisions. The excess is significant and varies depending on the nature of the activities and the geographic area. LISI AEROSPACE has taken out an insurance policy covering its liability for personal, physical and intangible damage post- delivery of its aeronautical and space products. The sum insured for all subsidiaries, per loss and per insurance year is €500 million. ■ Corporate officers’ liability insurance The Group has taken out an insurance policy for corporate officer liability for all Group subsidiaries, up to €20 million per annum. ■ CYBER insurance This insurance policy covers all of the Group’s subsidiaries for cyber attacks up to €10 million per year. ■ Transported goods insurance This insurance policy covers goods (or machines) transported at up to €5million per incident and/or event, including all types of damage, excluding some specific limits. 3  /  Internal control of the company Description of the internal control environment 3.1  /  General description The wider internal control environment is based on a decentralized organization within each division. An Executive Committee is responsible for ratifying a global policy, which must then be channeled down to each individual department. The Group has set out a number of procedures, summarized in an Internal Group Control manual, which is available to all relevant Group staff via an intranet site. This manual is supplemented by a Group accounting procedures manual. In addition, the Group has deployed a uniform reporting and information system in each division using an identical procedure each time. The specific features of the LISI Group’s activities require precise quality control to be carried out on operational processes in the following areas: ■ production, stock, flow management; ■ quality; ■ health, safety and environment; ■ Human Resources, payroll, ■ accounting, management control and cash flow; ■ purchasing and investments; ■ sales; ■ IT systems. ■ Tax, customs, ■ CSR, ■ Other themes specific to our business.