Ubisoft 2012 Annual Report Download - page 180

Governance and Internal control
2012
175
1.8.2.2 INTERNAL PUBLICATION OF INFORMATION
To effectively communicate strategic goals and provide the resources needed by teams to fulfill their
duties, the Company encourages ongoing information-sharing through numerous initiatives developing
collaborative tools.
In addition to local briefings and an organized internal communications network, a portal accessible to
all Group employees since 2007 has provided a permanent and up-to-date information portal on the
Group, the market and its developments, and the many internal sites.
These frequently updated internal sites facilitate knowledge sharing and discussions in all business
activities, for example:
o Operational: Workspaces for sharing and providing inter-site information on projects,
developments, technologies, studies and analyses;
o IT: A shared database to retrieve functional and technical documentation on applications and
projects led by IT departments;
o Accounting, finance and management control: A shared database, accessible to all relevant
employees, providing procedures manuals, Group contacts and information on the financial
reporting cycle.
The various departments regularly organize training and briefing sessions to ensure the dissemination
of information. In light of past success, the Group will continue to invest in these collaborative tools.
1.8.2.3 RISK IDENTIFICATION AND MANAGEMENT
In the course of its business, the Group is exposed to a series of risks that could affect its performance
and the achievement of its strategic and financial goals.
In order to implement mechanisms to manage its risks, mainly in the production and support
companies, the Company has identified the risks through a proactive approach: Upstream with
management teams and downstream with the operational and functional teams.
The main risks were identified by senior management in conjunction with functional and Group
management.
The nature of the main risk factors and means of prevention or action are outlined in the chapter of the
management report entitled “Risk factors”.
They were classed in five categories:
- Risks linked to the business and the video games market;
- Legal risks (lawsuits, regulatory environment, intellectual property, licensing agreement);
- Operational risks (associated with dependence on customers and suppliers, security
information, financial information);
- Market or financial risks;
- Industrial or environment-related risks.
At the management’s request, these risks, for which the level of control is insufficient or could be
improved, can then be analyzed by those involved in the control system. Internal control procedures
are then designed or reviewed in collaboration with operational teams to improve efficiency.
The procedures implemented represent an internal operating framework for the Company and are
constantly changing so as to ultimately provide effective risk management tools, for use at all levels of
the organization and, in particular, for analyzing IT and extra-financial risks.