2007 - April

3.0
Chairman of the Board of Directors’ report
2.2.4. Ongoing supervision of the internal control
system
The internal control system is monitored on an ongoing basis,
with regular reviews of its operations by the various players
described above (see Section 2.2.1 Internal control players).
The aim is to check its relevance and suitability in relation to
the company’s objectives.
The Group’s internal audit manager also contributes to
this monitoring effort, working on exchanges with risk
management and internal audit professionals at local or
national levels.
He factors in feedback from the Statutory Auditors resulting
from their interim reviews: in this way, the «Recommendation
Letter» is formalized by the latter, consolidating all of the
internal control points raised by the Statutory Auditors
in connection with their work. Each point is covered by a
management response and an action plan that is followed
for each intervention.
2.2.5. Distribution of relevant information in-house
This component is essential in order to rally all of the Group’s
companies around a common vision for internal control and
the use of standard techniques and terms.
an effective and consistent internal control culture, while
promoting exchanges on best practices within the Group. The
main issues looked at in 2007 included:
Glossary of common terms for risk management and
internal control;
Validation of the integrated risk management process
within the overall internal control system;
Performance of risk mapping interviews;
Project for an “internal control pack” to be offered for all
Group companies.
A dedicated risk section has been set up on the Group
intranet to distribute fact sheets on various issues relating to
the internal control system in its broadest sense.
In addition, the risk manager and/or internal audit manager
take part in the half-year meetings for all of the Group’s
accounting and financial managers, chairing an internal
control module.
The following subjects were looked at in 2007:
The integrated risk management process and risk
mapping;
The latest developments for accounting and financial
internal control;
The “internal control pack” project.
fully overhauled in order to adapt the amount of cover to
changes in the nature and volume of business for Group
companies;
Review of intellectual protection (brands and domain
names), resulting in additional filings, notably outside of
France;
Review of the application of the French intermediation law
on insurance;
Ongoing analysis of IT risks based on the risk questionnaire
developed in 2006.
Furthermore, internal audits were carried out in nine Group
companies over 2007, focusing on both general issues
(review of management, accounting or financial processes)
and company-specific subjects (e.g. review of Level 1, 2
or 3 controls in place on compensation or underwriting
processes, audit of the pre-closing process, etc.).
These include two follow-up assignments for audits carried
out over previous years.
Lastly, two integration follow-up audits were carried out on
companies that joined the Group in 2006.
In April 2007, a Risk Management and Internal Control Circle
was set up, grouping together the 15 members of staff
focused exclusively or partially on the overall internal control
approach.
This Circle met four times in 2007. It is intended to distribute
2.3. Missions conducted in 2007
In 2007, various cross-business issues were reviewed,
including:
Analysis of Group insurance policies, with these policies
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