119 / 302
Corporate governance
Risk management
With information systems that are constantly changing and difficult to
Financial risk management
3.5.1.4
grasp as a whole, along with the development of nomadic computing
and cybercrime, information systems security is also a challenge,
The main risks associated with the financial instruments used by the
especially the protection of data concerning our customers and Group are liquidity, interest rate, currency, credit and equity risks. It is
employees.
described in detail in Note
12.6 of the annex to the Consolidated
Financial Statements.
The Group is implementing a number of measures to ensure continuity
of operations and the protection of sensitive data.
Due to the differing natures of the various businesses, financial risks
arising from the bancassurance business (including Carrefour Banque
The Group Information Systems department handles the development
in particular) are managed separately from those related to the retail
and consistency of all computer applications within the Group, as part
business.
of a coordinated effort to promote synergies while taking a
forward-looking
approach
to
incorporating
technological
An organization has been set up around a cash-pooling system to track
developments.
financial risks. The Corporate Treasury and Financing department
based in Brussels manages the treasury and financing needs of all
A dedicated team, which relies on a network in all countries where the
retail subsidiaries, on the instructions of Group senior management.
Group operates, works to ensure information systems security through
A
reporting system ensures that Group senior management can
tailored governance, shared standards and regular controls.
oversee the department’s implementation of the approved
Control and valuation of assets
management strategies.
The risks associated with the consumer credit business are managed
Under the responsibility and coordination of the Group Assets,
and tracked directly by the entities concerned. Corporate Treasury and
Development and New Ventures director, who is also in charge of all
Financing oversees the proper implementation of the rules governing
Carrefour Property activities, each country implements an asset control
the consumer credit business, jointly with the other investors in the
and valuation policy which is tailored to its strategy.
business where applicable. A reporting system exists between local
teams and Corporate Treasury and Financing.
Site quality and control of the Group’s assets are key factors in terms of
competitiveness and success. This involves determining and
Liquidity risk
maintaining an optimal level of property holdings, while remaining
attentive to the maintenance, management and value of the Group’s
Distribution of borrowings by maturity and detailed information on
assets. The completion of appraisal reports on property assets may
liquidity risk appear in Note
12.6.1 of the annex to the Consolidated
present a number of risks related to property and financial market
Financial Statements.
drivers.
Liquidity risk is the risk that Carrefour will be unable to settle its
With a significant portion of stores operated under commercial leases,
financial liabilities when they fall due.
the Group’s inability to renew them under favourable terms could
impact performance. The same applies to inefficient or sub-optimal
The Group manages its liquidity risk by ensuring, to the extent
management of tenant relations at sites owned by the Group.
possible, that it has sufficient liquid assets at all times to settle its
liabilities when they fall due, whatever the conditions in the market.
For asset acquisitions or disposals, the cost of some acquisitions may
require significant financial resources, particularly external financing A Liquidity Committee meets at monthly intervals to check that the
which the Group cannot guarantee will be obtained in conditions that
Group’s financing needs are covered by its available resources.
are satisfactory to it. In addition, if the economic situation or the real
Corporate Treasury and Financing’s liquidity management strategy
estate market should worsen, the Group may not be in a position to
consists of:
dispose of its commercial real estate assets under satisfactory financial
promoting conservative financing strategies in order to ensure that
●
conditions or deadlines, if such should prove necessary.
the Group’s credit rating allows it to raise funds on the bond and
Finally, with the Group also carrying out real estate development
commercial paper markets;
activity for certain sites, the risks related to that activity might incur
maintaining a presence in the debt market through regular debt
●
delays or even cancellations of investment transactions, their
issuance programs, mainly in euros, in order to create a balanced
completion at a higher cost than initially projected, or lower profits
maturity profile. The Group’s issuance capacity under its Euro
than those expected at the outset.
Medium-Term Notes (EMTN) program totals €12
billion. Since
Under the responsibility of the Group legal department, the Group
2007, the loan agreements for the EMTN program include a soft
pursues an active asset protection policy, which includes: filing
change of control clause that would be triggered in the event that a
trademarks, designs and models, and patents to ensure exclusive
change of control led to Carrefour losing its investment grade rating.
rights to its creations; centralised ownership of the Carrefour banner
In this case, the notes would not become immediately repayable but
and Carrefour’s flagship own-brand products; extensive surveillance of
the interest rate would increase;
digital channels including social networks; partners’ compliance with
the graphic charter; and the legal defence of its rights to protect itself
from counterfeiting and usurpation.
2015 REGISTRATION DOCUMENT
119