Get Adobe Flash player 3Corporate governance RISK MANAGEMENT 3.4. RISK MANAGEMENT 3.4.1. SECURITY AND RISK MANAGEMENT STRATEGY

Accor is exposed to various risks and uncertainties as a result of its international presence and may have to manage crisis situations such as health scares, environmental disasters or geopolitical disruption.

Accor’s policies are guided by an assertive security and risk management strategy focused on protecting customers, employees and sub-contractors on every site.

The strategy deployed by the Safety, Security and Risk Management Departments, as overseen by the Corporate Secretary, is underpinned by a global network of correspondents, close working relationships with local authorities and the expertise of specialists.

It forms part of a pro-active process comprising three key components: risk identification, tracking, analysis and audit; training and awareness building; and crisis management.

Risk identification

The Risk Management Department has put in place a risk identification process covering every host country and the corporate head office.

An analysis is performed once a year in every country organization or subsidiary, with findings reported to the Risk Management Department, which confirms that the identified risks are covered. In addition, as part of their audit assignments within the Group’s entities, the internal auditors verify that the main risks identified in the risk map are being effectively and properly monitored.

The Group also has a Risk Prevention Committee based at the head office and reporting to the Corporate Secretary. Its roles and responsibilities are described on page105 in the report of the Chairman of the Board of Directors on internal control and risk management procedures.

Tracking and analysis

The security and safety situation in terms of geopolitical, health, weather, social and other risks is tracked daily by the Security and Risk Management Departments in conjunction with their local counterparts in every host country.

Employees on temporary or long-term assignments in a given country or region may consult regularly updated security and health advisories on the Risk Management intranet site.

In addition, a guide has been prepared for employees in French and English containing safety recommendations and advice for business travel.

Training and awareness building

Security, safety and crisis management audits and training programs are regularly offered to corporate departments, operating divisions and employees. As every year, several programs and exercises were organized for hotel managers and for local head office employees in 2012, in particular in Senegal, Algeria, Tunisia, Egypt, Ivory Coast, China, Indonesia, Spain, Thailand and Vietnam. As part of the preparations for the Euro 2012 Football Championship and the London Olympics, dedicated training programs were conducted in Poland and the United Kingdom.

Crisis management

Crisis management teams set up in every country organization and each unit provide effective liaison between local head offices and senior management.

Several crisis units were activated in 2012, in particular:

a in Thailand following the floods in the southern part of the country;

a in New Zealand when two typhoons hit the Fiji Islands;

a in Egypt during the various political protest movements;

a in the United States when Hurricane Sandy struck the East Coast.