_68 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 2 RISK MANAGEMENT Internal control process relating to the preparation of accounting and financial information ● project and fixed asset management; ● taxes; ● people management (compensation, benefits and travel expenses); ● consolidation; ● investor relations; ● mergers/acquisitions/divestments and their integration into the Group; ● management of customs affairs, including the Group’s customs management processes, import/export management, supervising freight forwarders, organizing delegations of authority, customs documentation, etc. At every company covered by the system, the key internal control activities for each process are self-assessed and improved by the line personnel concerned every year. Internal Controller reviews The key controls for every process are tested in every facility at least once every four years or more often if necessary, depending on the degree of risk. The results of tests conducted by internal controllers are shared with the external auditors of the Group's companies, so that they can capitalize on the findings and strengthen their own external audit procedures. Action plans In each company, action plans are prepared to address the identified areas for improvement and are implemented by line personnel. More generally, this approach is integrated into the continuous improvement process, which is also supported by the findings of the external and internal auditors. In addition, this self-assessment and testing system is applied to the five integrated components of the internal control process, as defined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO): control environment, risk assessment, control activities, information and communication, and monitoring activities. Action plans are generally scheduled for completion within two years for 80% of compliance shortfalls, excluding information system issues, which take longer to resolve and require more resources. Countermeasures have been implemented to mitigate risk exposure in the interim.
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