Global management of the risks and the performance - Prescriptions and practices

The article [C 8 106] takes stock of the events that have led to an unprecedented wave of regulations since the 1990s. Whereas, in the past, risk management had little impact on the organization as a whole, today, regulations for the financial and non-financial industries have had an impact on the internal and external governance of companies.

As the main providers of risk financing solutions for corporate clients, banks, insurance and reinsurance companies are going to be subject to financial regulations, which will affect their strategic and operational management, and thus their relationships with all their clients, including companies in the construction sector (self-employed entrepreneurs, VSEs, SMEs, ETIs, major groups). With the Basel process, the perimeter is the G20 for banks, with an implementation horizon set for 2019, and that for insurance and reinsurance companies is the European Union, with 2016 as the implementation horizon.

To achieve their strategy of profitable growth, companies in the construction sector must also take into account complex internal and external environments, as well as uncertainty. To create value in a context of uncertainty, two regulations have been issued: COSO II in 2004 and ISO in 2009. We won't go back over the regulations here, which act as prescriptions but which, unlike COSO II, ISO or AMF, are mandatory.

The first proposal, COSO II, is designed to clarify the roles involved in ensuring more effective global risk management. The second, already noticed by many manufacturers, is ISO 31000 for "Principles", with its ISO 31010 toolbox and ISO guide 73 vocabulary.

A third requirement came with the Autorité des marchés financiers' reference framework for risk management and internal control systems. Firstly, to take account of the obligations of French companies subject to the Financial Security Act, and secondly, to take account of the DDAC Act. This framework is proposed as a tool for progress, the main aim of which is to improve company management. This reference framework is proposed for major groups, and a specific framework is proposed for small and mid-cap companies (VaMPS).

The first section summarizes these three...