243 Life Is On | Schneider Electric www.se.com Chapter 3 – How we manage risk at Schneider Electric Strategic Report 3. 3.1 Definition and objectives of internal control and risk management 244 3.1.1 Definition and objectives 244 3.1.2 Scope of this report 244 3.2 Organization and management 244 3.2.1 Group values 244 3.2.2 General internal control and risk management principles: our three lines of defense 245 3.2.3 Governing bodies 246 3.3 Risk management mechanism 249 3.3.1 One unique risk taxonomy is established to have a common risk language 249 3.3.2 Different mechanisms to identify, assess, and mitigate risks 250 3.3.3 Each Risk Overseer is in charge of moving the risk flywheel for his/her respective domain 251 3.3.4 Risk identification and management 252 3.4 Key risks 254 3.5 Insurance 265 How we manage risk at Schneider Electric 3