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Corporate governance
Risk management
The consolidated statement of financial position and income
Financial services
3.5.1.5
statement are exposed to a currency translation risk: consolidated
financial ratios are affected by changes in exchange rates used to Financial services distribute consumer credit, savings products,
translate the income and net assets of foreign subsidiaries operating insurance products and payment services, exposing them to classic
outside the eurozone.
financial risks (risks of providing financing and insurance, risks related
to financial ratios, liquidity risk) along with regulatory obligations to
The translation risk on foreign operations outside the eurozone mainly
which financial and banking institutions are subject, specifically
concerns the Brazilian real, Argentine peso and Chinese renminbi. For
systems to fight money laundering and terrorism financing.
example, changes in the average exchange rates used in 2015
compared with those for 2014 reduced consolidated net sales by
Carrefour Banque dispose of a map processes and operational risks and
€794 million or 1% and recurring operating income by €109 million or
defined the principles and outline for grouping and pooling operational
4.5%.
risk management tools for France and for entities in other countries.
Lastly, when financing is arranged locally, it is generally denominated Carrefour Banque has defined materiality thresholds for incidents
in local currency.
uncovered through internal control procedures.
Equity risk
Credit risk
Equity risk corresponds to the potential impact of changes in the To protect against default by borrowers, the Group’s finance
Carrefour share price on its share-based payment commitments and companies have set up systems to check the quality and repayment
on treasury stock.
capacity of their customers. These include:
Group policy is to avoid taking positions on its own shares or those of
decision-making aids such as credit scoring applications,
●
other companies, except in response to particular circumstances or
income/debt simulation tools and credit history checking
needs.
procedures;
From time to time, the Group buys back its shares on the market or
interrogation of positive and negative credit history databases,
●
purchases call options on its shares, mainly in connection with its stock
where they exist;
option plans. The frequency and size of these purchases depend on the
active management of collection processes;
●
share price.
credit risk monitoring and control systems.
●
At December
31, 2015, shares and options held directly or indirectly
Within each credit company, a Credit risk department is responsible for
by the Group covered its total commitments under outstanding stock all of these processes, and the Board of Directors receives copies of all
option.
Credit Risk Management Committee reports.
Marketable securities portfolios and other financial investments held At Group level, a Credit Risk – Europe unit has been set up to oversee
by the Group consist for the most part of money market instruments
and implement credit risk management policies in France, Spain,
that do not expose the Group to any material equity risk.
Belgium and Italy.
Quality of financial management, budgets and
Detailed information on the Group’s exposure to credit risk appears in
Note 12.6.4 of the annex to the Consolidated Financial Statements.
reporting
The organisation and procedures for financial and accounting matters
are set forth in the Group’s Reference Guide to Corporate Rules, which
applies to all subsidiaries.
Procedures and tools used are intended to control financial flows in all
countries where the Group operates, to verify that budgets and
forecasts best reflect observed trends, to constitute a realistic estimate
of future performance, and to ensure that the Consolidated Financial
Statements provide a true and fair view of the Group’s financial
position and its results.
2015 REGISTRATION DOCUMENT
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