In 2019, the Group created an Internal Audit Department, reporting directly to the Audit Committee, which in turn is overseen by the Group Supervisory Committee. This dedicated team is able to take action worldwide, helping subsidiaries to manage risks and ensuring compliance with Group Directives.

Florent Prime
Head of Internal Control

Reconciling entrepreneurship

and risk management

Over several years, Fives has expanded its area of influence with its challenges, adapting accordingly in an increasingly complex world. Since 2004 the Group has established directives, defining understandable guidelines for all stakeholders (employees, clients, suppliers, investors, etc.). The guidelines reflect the Group's willingness to ensure seamless contractual fulfillment, while anticipating opportunities and risks; making customer care and attentive service a fundamental part of all its actions.

The Directives cover topics ranging from intellectual property and CSR, to customer risks, taxation linked to contracts, HR, travel safety, visual identity and information systems. They are critical to the proper development and success of the Group as both a risk control and management tool; core aspects of the Fives' internal control system.
The objective of the Internal Control Department is primarily to help the Divisions and Subsidiaries improve risk management. It also serves to adapt the Directives to changes in the organization of Fives and the markets it serves. Lastly, Internal Control’s role is to support the subsidiaries and divisions with their annual self-assessment. Better anticipation, improved information sharing, learning, awareness, training, understanding responsibilities and risks are key to move forward together.

Highlights

In order to ensure better awareness, Fives has defined eight risk categories based on their nature and criticality (in terms of probability and impact), such as Group governance & organization, project & operations management or personal and environmental safety and security.
In 2019, the risk control system - previously strengthened in 2018 with the creation of an Internal Control Department - was reinforced with a field team dedicated to internal audits, performing internal audit engagements at subsidiaries’ sites.
The Internal Audit team focused on a key process for all Group subsidiaries: Quotating commercial offers, the key to generating value and a foundation for cost control. In total, 21 best practices were identified, including 8 that were considered undeniably essential and subject to a global action plan.
Fives Intralogistics Corp. is seeking to develop its EPC (Turn-key projects) activities, requiring strengthening specific skills (Project management, engineering, sub-contractors on-site management etc.). The Internal Audit team has helped the subsidiary to identify the main risk areas and define an action plan.