In order to ensure the control of its risks and guarantee the achievement of its goals, SIPH has adopted a risk management and internal control system based on the following characteristics:

Governance and organization

SIPH has put in place an efficient organization, with a clear definition of responsibilities with adequate resources and skills, and based on appropriate values, procedures and practices. The main bodies that oversee the internal control system are mainly :

• The SIPH Board of Directors through its Audit Committee: The SIPH Audit Committee meets at least 3 times a year . Its main mission is ensuring the quality and integrity of financial information and the effectiveness of the internal control and risk management systems deployed across all the firm’s entities.
• The Ethics Committee, which ensures that the values of SIPH are known and respected by the staff. SIPH has also adopted the MIDDLENEXT governance code which advocates clarity of roles in strategic matters and insists on the importance of setting an example for all governance players. Finally, within the framework of the SAPIN II law, SIPH has set up an anti-corruption system.
• The monitoring Committees which oversee the operational and financial performance of each company belonging to SIPH.

System

The SAP integrated management software package, implemented in almost all of SIPH subsidiaries covers all of their the operational and support processes. It ensures adequate communication of the necessary information for the activities’ management. The performance of SIPH entities is regularly assessed using budget analyzes and reporting tools implemented as part of monitoring activities.

In addition, as part of the continuous improvement of its processes and systems, SIPH has a quality management system in accordance with the ISO 9001 version 2015 and 14001 version 2015 standards, the certifications of which will be concluded. across the entire perimeter in 2022.

Risk management and internal control

SIPH’s Internal Audit Department independently and objectively implements, an annual internal audit plan for all entities. This audit plan is drawn up in accordance with the risk mapping and validated by the SIPH Audit Committee. The conclusions of the audit work are communicated to the General Management of the Group's entities as well as to the SIPH Audit Committee.