2013 Registration document and annual financial report - page 127

Registration Document 2013
125
Corporate Governance
3
Report of the Chairman of the Board of Directors
In this regard, the main structures responsible for overseeing the
internal control and risk management systems are as follows:
Executive Management
In accordance with the law and the Company’s Bylaws, the
Chairman and Chief Executive Officer represents the Company
in its dealings with third parties and has the broadest powers to
act on behalf of the Company in all circumstances. The situations
where exercise of the Chairman and Chief Executive Officer’s
powers is subject to the prior approval of the Board of Directors
are detailed in paragraph 3.2.1 of this report.
On November 27, 2013, the new Chairman and Chief Executive
Officer appointed on August 27, 2013 unveiled his new strategy
for transforming the Group into the world’s best performing and
most highly valued hotel operator. To this end the Group’s business
model is now structured around two core competencies:
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HotelServices: a hotel operator and brand franchisor;
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HotelInvest: a hotel owner and investor.
For the purpose of carrying out his duties, the Chairman and Chief
Executive Officer is assisted by an
Executive Committee
that
includes representatives from all of the operating divisions and
corporate functions. This Committee comprises the following
members:
ƒƒ
the Deputy Chief Executive Officer in charge of Transformation,
Human Resources and Legal Affairs, whose responsibilities also
include Accor’s corporate secretarial functions (insurance, risk
management, security and Internal Audit);
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the Chief Financial Officer, who is also in charge of Group
Procurement;
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the Chief Executive Officer of HotelInvest;
ƒƒ
the Deputy Chief Executive Officer in charge of Marketing,
Digital Media, Distribution and IT Systems;
ƒƒ
the Chief Executive Officer of HotelServices Americas;
ƒƒ
the Chief Executive Officer of HotelServices Asia-Pacific;
ƒƒ
the Chief Executive Officer of HotelServices Northern, Central
and Eastern Europe;
ƒƒ
the Chief Executive Officer of HotelServices France;
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the Chief Executive Officer of HotelServices Mediterranean,
Middle East and Africa.
In addition, several corporate departments that provide services to
both HotelServices and HotelInvest report directly to the Chairman
and Chief Executive Officer, namely:
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the Group Business Development Department;
ƒƒ
the Strategy Department;
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the Institutional Relations Department;
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the Media Relations Department;
ƒƒ
the Corporate Brand, CSR and Internal Communications
Department.
Group Finance
The Chief Financial Officer ensures that the Group’s financial
policies are properly implemented, in particular by circulating to
the Divisions the accounting principles and standards used to
prepare the consolidated financial statements.
The Group Finance function is organized around the following
departments:
ƒƒ
the Finance Senior Executive Office, which is in charge of Group
financial control, Group financial information systems and the
Finance Department’s cross-business projects;
ƒƒ
the Corporate Treasury, Financing and Credit Management
Department, which is in charge of overseeing:
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the Cash Management Department,
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the Credit Management Department;
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the Back Office and Treasury Information System Department;
ƒƒ
the Tax Department (taskedwith implementing and/or coordinating
Group tax planning measures, particularly relating to cross-border
transactions);
ƒƒ
the Financial Communication and Investor Relations Department,
which is in charge of releasing information on the Group’s strategy
and results to the financial markets;
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the Consolidation Department, which is also in charge of the
Group’s accounting standards (IFRS);
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the parent company’s Accounting Department;
ƒƒ
the Finance Department of the company in charge of the Group’s
loyalty program;
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the Group Procurement Department.
Group Financemaintains regular contact with the Statutory Auditors,
who audit the financial statements of the Company and the Group
in accordance with the applicable laws and regulations.
The Risk Management Department
The Risk Management Department is responsible for implementing
procedures that anticipate and appropriately address the Group’s
risk exposures. In this capacity, it is in charge of drafting crisis
management plans, particularly for the head office, and coordinating
the network of international risk management officers. It is
supported in its work by all of the Group’s operational and corporate
departments.
At end-2013, the RiskManagement Department had an international
network of 41 risk management officers and 35 crisis management
officers.
The department’s duties include:
ƒƒ
developing and adapting tools to monitor risk trends and prioritize
the Group’s main risks;
ƒƒ
devising a risk prevention strategy aimed at reducing the frequency
and severity of identified risks;
ƒƒ
rolling out a consistent crisis management strategy across the
Group;
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setting up and adapting Group-wide crisis management systems
A structured, aligned crisis management organization with
specifically-designated teams has been set up at Group level for
the head office and the operating units, in order to quickly ensure
the safety of customers, local employees, expatriates and on-site
service providers in the event of a crisis.
The successful application of the Group’s crisis management
processes and tools when dealing with local and/or regional crises
(see the “Risk Factors” section below) has provided assurance
of their effectiveness.
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