2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 66 MANAGEMENT REPORT 3 Control environment 4.2.5 KeyGroup internal controls The Group has prepared a manual of key basic controls. This manual groups the 91 key controls into eight main Group administrative and financial processes. This guide applies to all of the Group’s entities. 4.2.6 Group control of operating activities The Group’s HSE (Health, Safety and Environment) managers and referring officers carry out regular controls of operating units to check the effectiveness of the system and the proper application of BOURBON standards. Furthermore, every operating unit is subject to periodic or one-off external audits aimed at making certain that its internal organization and its vessels meet the recommendations under standards or codes that are either mandatory or adopted intentionally. 4.2.7 Qualitymanagement system The Quality Department is responsible for seeing to it that an integrated quality management system is set up and maintained. Under this system the Group is broken down by the nature of each process: strategic, support, key or evaluation. 4.3 THE STATUTORY AUDITORS As of December 31 each year, the Statutory Auditors perform a complete audit of the financial statements of BOURBON Corporation and all its subsidiaries. An interim audit that takes the form of a limited review is also conducted by the Statutory Auditors on June 30 each year. Their work provides the Group with reasonable assurance regarding the reliability and accuracy of the accounting and financial information produced. In the course of their audit, the Statutory Auditors review the internal control system in order to identify and evaluate the risk of any significant misstatement in the financial statements so that they can design and implement their audit procedures. 4.4 RISK MANAGEMENT Risk management is a group-wide process that involves a large number of players (operating and functional departments, risk managers, “process owners”, Executive Committee, Audit Committee, Internal Audit, insurance). The risk management process covers the updating of risk mapping and risk management, monitoring and control. The risk map is updated annually, which enables the Group to precisely identify the most significant risks to which it may be exposed. The potential risks identified were of many different kinds, both at the Group level and in terms of its operational activities. The Internal Audit, Risk Director and Group Compliance officer is responsible for the design, implementation and leadership of the risk management process. 4.5 COMPLIANCE BOURBON’s compliance program is composed of seven steps: 3 tone at the Top: the General Management Committee has undertaken to promote compliance and maintain a culture of ethical decision-making within the Group; 3 risk evaluation: identifying all risks of non-compliance in order to develop the tools, techniques and corrective measures necessary to prevent these risks; 3 policies and procedures: the establishment and deployment of specific guidelines ensures that adequate compliance processes exist within the Group; 3 communication: the deployment of the program is regularly communicated to all employees; 3 in 2015, the Group also successfully launched an e-learning compliance program aimed at all onshore and offshore employees; this program continued during 2017; 3 coordination and monitoring: a centralized compliance function is in operation and coordinates the Group’s entire compliance program; 3 penalties: any infringement of the compliance rules is taken extremely seriously and the appropriate penalties are imposed where necessary. In 2014, theGroup implemented a dedicated compliance organization with 26 compliance managers across the Group’s subsidiaries and which report to the Group’s compliance team. BOURBON employees and stakeholders may need support on the application or interpretation of the code of conduct. BOURBON strengthened its ethical approach by providing its employees and stakeholders with an ethics alert line available 24/7 enabling anyone to report behavior contrary to the BOURBON code of conduct.