2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

5CORPORATE GOVERNANCEChairman’s ReportConfidentialityAll Group employees are bound by a duty of confidentiality coveringany information they obtain in the course of their employment.Employees likely to obtain inside information during the course oftheir employment are identified and registered on an insider list, inaccordance with the AMF’s General Regulations.• Risk management systemThe risk management system is described in the section on generalrisk management principles.• Control activitiesCompliance with laws and regulationsThe control activities described below aim to mitigate the legal risksdescribed in the section of the annual report entitled “Risk factors– Insurance”.OrganisationThe Group Legal department’s role is to ensure that the Group’soperations comply with laws and regulations. It reports monthly onall major pending legal matters and holds regular meetings designedto spread good practices.All consolidated companies have a legal department responsible forensuring that the company complies with all applicable laws andregulations under the responsibility of the Group Legal Counsel.Tax matters are dealt with by a dedicated department reporting tothe Group’s Chief Financial Officer.Legal intelligenceLegal intelligence is the responsibility of each business unit’s legalteam, supported where necessary by external law firms.The legal teams have access to databases and specialist reviews tokeep them abreast of developments on a daily basis.The Human Resources and Legal departments are also involved inlegal intelligence with regard to labour law.Transcribing legislation into company regulationsThe legal team is responsible for transcribing laws and regulationsapplicable to the various business units, as well as any amendments.It prepares and circulates opinions, standard procedures or memoson the Group’s legal and regulatory obligations.Staff information and training on relevant regulationsDocuments drawn up by the legal team are sent to the heads ofthe operating units to ensure that they comply with all laws andregulations.The Group Legal department is also involved in prevention and advicecampaigns in all areas of the law. It seeks to raise the awarenessof the heads of the Group’s operating units and support functionsconcerning risks that may arise due to the conduct of Groupcompanies and employees. It circulates procedures and providestraining to all employees.Control activities to ensure that operationscomply with regulationsEach Legal department is responsible for ensuring that its company’ssubsidiaries comply with applicable laws and regulations.Compliance control is the responsibility of each company’smanagement team or its delegated representatives. These aspectsof compliance are also controlled during internal audits of operations.Disputes and litigation are overseen by each Legal department,supported if necessary by external lawyers and the Group Legaldepartment.Compliance with Senior Management instructionsand guidanceCirculating Senior Management instructions and guidanceAs described earlier, the Group’s objectives are set by SeniorManagement and shared with the business unit heads. The Strategydepartment is responsible for checking that the plan is alwaysconsistent with Senior Management’s objectives. Each business unitthen drills down its own objectives to sub-unit level. For internationalsubsidiaries, the process involves the International Co-ordinationdepartment, which is responsible for ensuring consistency betweenthe objectives and their various projects.Monitoring compliance with instructions and guidanceA number of key performance indicators are used to monitorcompliance with Senior Management instructions and guidance, andto measure any variances against its objectives. The frequency ofindicator reporting depends on the type of information. The financialreporting systems are also used to monitor performance on a businessunit and consolidated basis.Senior Management receives a standard monthly management reportdrawn up by each business unit, summarising its key performanceand management indicators and including a year-to-date incomestatement, balance sheet and cash flow statement. It also containscomments on achievement of objectives and a report on the mainactions in progress.The information contained in the monthly report is formally reviewedby Senior Management and the business unit’s management toprovide appropriate oversight. In addition, the Group FinancialControl department reports regularly to Senior Management on itsanalysis work.Senior Management also receives a monthly progress report on theGroup’s various projects. The report is prepared in a standardisedformat by the project managers in conjunction with the Strategydepartment.A unit dedicated to optimising and monitoring working capital isresponsible for setting improvement targets for each Group entity,supporting them in implementing action plans, spreading best practicesand regularly tracking monthly actuals and half-yearly forecasts.All reported data aims to give Senior Management the informationit needs to monitor achievement of its annual objectives and toimplement remedial plans where necessary.Annual forecasts are reviewed twice a year to factor in market trendsand revise the full-year targets if necessary. These revisions aresubmitted to Senior Management for approval.The Investment Committee is responsible for approving and overseeingthe Group’s investment projects and their compliance with allocatedbudgets. The Committee sends a monthly report on year-to-dateinvestments and month-end forecasts to Senior Management.Effectiveness of internal processes particularlywith regard to safeguarding assetsThe Control activities described below aim to mitigate the operationalrisks described in the section of the annual report entitled “Riskfactors – Insurance”.188 Casino Group | Registration Document 2010