A global management of risks

Hands-on management
of risks and challenges

We pay close attention to our environment and our stakeholders to identify the major challenges facing Edenred, aiming to avoid any pitfalls that could hinder operations. By taking this analytical approach, we are also able to implement tailored action plans when needed.

Identifying priority issues

The materiality assessment we conducted in 2017 identified and prioritized the major social, economic and environmental challenges facing Edenred and our stakeholders.

The seven priority issues that emerged are what guide the broad lines of our corporate social responsibility policy and provide lasting direction for our successive strategic plans.

This materiality assessment is being updated in 2022.

Edenred's materiality matrix

Understanding and managing risks

We regularly analyze the risks that could impact our business or reputation in all of the regions where we operate. The risk map was updated in 2021 under the aegis of the Audit and Risk Committee, with the help of various corporate and operating departments and Group subsidiaries. A trend indicator (up or down) tracks movements in risk materiality.
Mapped out based on their probability and financial impact, the risks are divided into six broad categories.
 

Risk category Examples
Financial risks Currency fluctuations, client default
Legal risks Change in local laws and regulations adversely affecting the Group’s solutions
Information systems and cybercrime risks Cyberattack, information systems resilience and personal data protection
Group strategy and competitive environment risks Competitive pressure and acquisition strategy
Operational risks Business continuity and voucher fraud
Climate risks Impact of carbon taxes on work-related mobilitye

The CSR Department conducts a supplemental review of non-financial risks based on international standards and external benchmarks, as well as on the work of the Compensation, Appointments and CSR Committee. The impact of the non-financial risks is assessed using the Group’s risk mapping methodology, taking into account the opinions of stakeholders. Priority risks are those that relate directly to the priority issues defined in the materiality assessment.

Priority issue Examples of opportunities or associated non-financial risks
Talent management Risks related to talent attraction, retention and training
Sustainable and healthy nutrition promotion Opportunity to differentiate from the viewpoint of employee users and partner merchants
Energy and climate change Physical risks related to climate change
Eco-design and circular economy Transition risks related to climate change
Business ethics Risks associated with regulatory compliance and business ethics
Responsible payment digitalization and client satisfaction Risks related to stakeholder expectations

We mitigate these risks with specific action plans and monitoring, aimed in particular at: