Universal Registration Document 2020

• disruption of the running of the Group’s operations, construction sites and major projects in the event of restrictions likely to affect business continuity (risk 4A) and possibly the level of production, particularly in the event of an impact on nuclear unit shutdowns (risk 5A);
• Covid impact effects on demand and the weakening of the economy (unpaid and uncollectable amounts) (3A);
• impact of a possible slowdown in economic activity with regard to the price of raw materials and electricity on the wholesale markets, as well as on the level of demand for electricity or counterparty risks (risks 2C and 2E);
• impact of a disruption in the financial markets through a decrease in the valuation of the portfolio of dedicated assets or pension assets affecting the Group’s financial results and the coverage rate of nuclear provisions, and impact of a decrease in interest rates on the calculation of the amount of nuclear provisions and provisions for employee benefits (risks mentioned in chapter 2.2.2).

These impacts could be accentuated if the crisis were to continue.

All the risks identified in this document have been selected because they are significant in terms of the materiality of their estimated impact on the Group. In addition, they are prioritised based on a qualitative assessment of their criticality, taking into account simultaneously the significance of the potential impact for the Group, the probability of their occurrence and the level of control, in light of the actions undertaken. This prioritisation produces a three-level scale for all risks: the criticality can be considered strong, intermediate or moderate. The categories are not hierarchically arranged, but the risks are compared with each other, which is reflected in their level of criticality.

As a general rule, the scope of exposure is France, Belgium, Italy, the United Kingdom and all countries in which the Group is present. Where the scope of exposure is more restrictive, it is specified in the table and in the risk description.

Exposure to risk may vary according to duration. The potential impact of these risks may produce effects at very different time horizons, ranging from very short term (less than a year), to medium term (up to a few years) to very long term (up to several decades or more, given the nature of the relevant industrial activities which may span centuries).

In order to control risks, measures have been put in place. Some measures apply to all risks: internal control, commitment approval process (see section 2.1); others are specific to each risk.

Additional provisions for taking into account certain risks related to Corporate Social Responsibility are set out in Chapter 3. Cross-references shall, where appropriate, be specified in the risk description.