Faced with a range of both internal and external risks that could prevent the Group from reaching its objectives, Pernod Ricard has implemented a system of internal control and risk management aiming at improving the forecasting and monitoring of these risks. Through the Group’s decentralised structure, each function and each affiliate contributes on a continuous basis to the smooth running and improvement of this system.
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Loss of major industrial site/strategic inventory
Toxic contamination
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Cyber attack
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Geopolitical and macro-economic instability
Anti-alcohol environment
Regulatory risks
Pressure on prices and margins
Climate change and environmental damage
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S&R challenges
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Supply chain disruptions
Product quality issues
Health & safety
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Fast-changing consumer behaviours
Financial risks (FX, interest rates, credit)
Talent management
Negative media coverage
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Pensions
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Major litigation
Fraud
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Counterfeiting/IP rights
Methodology: in 2021, Pernod Ricard updated its risk matrix, a tool which enables it to manage and monitor its risks and which involves all affiliates and all functions of the Group. This process - in which the Top Management actively took part - highlighted the Group’s resilience throughout the Covid-19 pandemic while reshaping the nature and monitoring of the main risks. The purpose of the matrix disclosed here above is to enable readers to picture the challenges, and should be read in conjunction with the explanatory texts detailed in the Universal Registration Document 2020/21. These matrix will be reviewed every year to take into account major evolutions in Pernod Ricard’s risk universe.