FINANCIAL COMMUNICATION: FRAMEWORK AND PRACTICES - 2019 EDITION

93 6  z RISKS AND LITIGATION In the course of its business, the issuer may be exposed to various types of risks. Schematically, it is possible to distinguish between the issuer’s own risks that are specific to it and are related to internal factors (for example, the risk of default of one of its clients, risks related to inappropriate supplier practices, risks linked to a significant event concerning a listed or non-listed subsidiary of the issuer, or the risk of default of a counterparty in market transactions), risks related to external factors, particularly macroeconomic factors, that may have an impact on its business and/or its results (for example, market risks including currency risk, interest rate risk, liquidity risk or commodity-related risk), risks related to regulatory changes applicable to the issuer or modification of tax law, or country risks that may have an impact on the issuer’s production, product distribution or supplies. In its Guide for compiling registration documents, the AMF sets out its recommendations for the drafting of the “Risk factors” section. With regard to risk-factor disclosures in the URD, and pending the publication of the delegated European regulation, ESMA published final guidelines (ESMA31-62-1217 – March 29, 2019) in which it specifies the information that should be provided including aspects concerning the number of categories of risk and materiality. RISKS RELATEDTO CHANGES IN MACROECONOMIC FACTORS The issuer must in principle disclose to the market, on a regular basis, within its periodic information, information that enables investors to assess its sensitivity to macroeconomic risks. Thus, the market should in principle be able to assess the impact on the issuer’s situation of any change in macroeconomic factors that may affect it. Information on market risks to which the issuer is exposed must be included in the issuer’s financial statements under IFRS 7. The section in the management report, the annual financial report, on the main risks and uncertainties and the “Risk factors” section of the registration document/URD may refer to relevant passages of the issuer’s financial statements for the description of these market risks. In addition to this information, from now on the management report must describe internal control and risk management procedures relating to the preparation and processing of financial and accounting information (as formerly described in the chairman’s report on internal control). The report must also describe the financial risks related to the effects of climate change and the measures taken by the company to mitigate these by deploying carbon-light processes in all components of its business. Lastly, “ where appropriate for measuring its assets, liabilities, financial position and results ”, the management report must outline the issuer’s objectives and policies concerning the hedging for each main category of planned transactions for which Risks related to changes in macroeconomic factors: n NATIXIS