Ubisoft 2012 Annual Report Download - page 42

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Management Report
2012
37
1.7.3.3 FINANCIAL AND ACCOUNTING RISKS
The reliability of financial and accounting information, risk management and the related internal control
system are explained in the report by the Chairman of the Board of Directors on the internal control
procedures implemented by the Company.
1.7.3.4 CHALLENGES INHERENT IN INFORMATION SECURITY
Like any other international company with a strong presence on the Internet, Ubisoft is exposed to
multiple prerequisites such as changes in regulations and standards relating to data protection and the
management of sensitive data, while also facing numerous threats in many areas: mobility solutions,
social networking, online services and games, partnerships for development, to mention just a few.
Information is a strategic resource that represents considerable value for Ubisoft and must be suitably
protected. Hence, Ubisoft's risk management and security team is responsible for protecting
information from external and internal threats in order to guarantee its confidentiality, integrity and
availability, and to ensure business continuity. To achieve this, Ubisoft is investing more and more
heavily in specialist resources to reduce current risks and to increase our ability to anticipate future
threats.
Efforts with regard to policies and standards were pursued while increasing both technical and human
resources dedicated to various initiatives under way: security relay points are now in place at all Group
subsidiaries to handle local problems and relay information. A centralized incident management
system is in place and a secure and standardized solution for teleworking has been introduced,
enabling enhancement of collaboration within the Group and with our numerous partners. Internal and
external audits are conducted regularly to validate various architectures and technology choices of our
project portfolio. Ubisoft is clearly adapting and progressing by modifying its approach to risk
management in order to meet future challenges in an environment where technologies are constantly
evolving.
1.7.4 MARKET RISKS
1.7.4.1 FINANCIAL RISKS:
In the course of its business, the Group is exposed to varying degrees of financial risk (foreign-
exchange, financing, liquidity, interest-rate), counterparty risk and equity risk.
Group policy consists of:
minimizing the impact of its exposure to market risks on both its income and, to a lesser
extent, its balance sheet,
tracking and managing this exposure centrally whenever regulatory and monetary
circumstances allow,
using derivatives for hedging purposes only.
The risk management policy and its organization within the Group - notably through the Treasury
Department, attached to the Finance Department - are described in the Chairman's internal audit
report.
Additional information and figures on exposure to these different risks are detailed in Note 16 to the
consolidated financial statements.