RISK FACTORS 4 are prepared by the “accounting” function, automatical ly Good Laboratory Practices (GLP) and certified by AAALAC and electronically transmitted to the bank for payment, and International, a private non-profit organization that is an validated by the “management control” function. international reference in assessing the humane animal treatment Payroll management in experimentation. (see Paragraph 8.2.3). Payrol l is also subcontracted in its entirety to an accounting 4.11.2.2.2 Pharmaceutical and clinical development of drug firm. We performed a monthly three-way reconciliation control candidates (reconciliation between the payroll journal, accounting entries These activities are subcontracted to top-tier, specialized and bank statement) over the payroll the documentation received international providers operating in accordance with both Good by the third-party provider. Laboratory Practices (GLP) and Good Clinical Practices (GCP). 4.11.2.2 Operational risk management The manufacturing of clinical supply is subcontracted to Contract Manufacturing Organizations (CMOs). Given its stage of development, the Company’s operations are primarily: • Pre-clinical and toxicity studies of drug candidates; 4.12 • Pharmaceutical and clinical development of drug candidates. FINANCIAL RISK RELATED TO CLIMATE CHANGE 4.11.2.2.1 Preclinical research and toxicity studies of drug Given the nature of its activities, GenSight Biologics is not candidates exposed to any environment-specific risk. The Company’s These activities are subcontracted to top-tier, specialized environmental responsibility is further described in section 8.2.2 international providers operating in accordance with of this Registration Document. GENSIGHT BIOLOGICS – 2017 Registration Document– 59