BPCE - 2018 Registration document

6 RISK REPORT

General structure of Groupe BPCE’S internal control system

6.2.3

Structure of Groupe BPCE’s internal control system

ORGANIZATION CHART – GROUPE BPCE INTERNAL CONTROL SYSTEM ➡

Supervisory Body

Responsible for the quality of the Internal Control system

Audit Committee

Risk Committee

Executive Body Executive managers

Remuneration Committee

Appointments Committee

Internal Control Coordination Committee (3CI)

Periodic control

Audit-Inspection function

Risk and Compliance Committee or Executive Risk Committee and specific committees for each type of risk

Outsourced activities

Review, ISS, BCP and SPB functions

Risk Management function

Compliance function

Level 2 permanent controls

Non-financial risks (Compliance, Operational Risk BCP, ISS)

Credit risks

Financial risks

Coordination of Permanent Controls

1 Level permanent controls

Self-checks by the operational departments under managerial or functional supervision

INTERNAL CONTROL COORDINATION COMMITTEE

Générale division, the national or European supervisory authorities, and the permanent control functions; reviewing the Group’s internal control system, identifying any ● shortcomings, and suggesting appropriate solutions to further secure the institutions and the Group; reviewing the allocation of resources with respect to risks incurred; ● presenting the results of institution controls or benchmarks; ● deciding on any cross-business initiatives or measures aimed at ● strengthening the Group’s internal control system; ensuring consistency between measures taken to strengthen ● permanent control and risk areas identified during the consolidated macro-level risk mapping exercise. This committee’s members include the member of the Executive Management Committee in charge of Risk, Compliance and Permanent Control and the Group Head of Internal Audit, who is a member of the Group’s Executive Committee. The Management Board member in charge of Retail Banking and Insurance is a standing member. If applicable, the Internal Control Coordination Committee may hear reports from operational managers about measures they have taken to apply recommendations made by internal and external control bodies.

The Chairman of the central institution’s Management Board is responsible for ensuring the consistency and effectiveness of the internal control system. A Group Internal Control Coordination Committee (CCCIG), chaired by the Chairman of the Management Board or his representative, meets periodically. This committee is responsible for dealing with all issues relating to the consistency and effectiveness of the Group internal control system, as well as the results of risk management and internal control work and follow-up work. The committee’s main responsibilities include: validating the Group’s Internal Control Charter, Risk, Compliance ● and Permanent Control Charter and Audit Charter; reviewing dashboards and reports on group control results, and ● presenting permanent control coordination initiatives and results; validating action plans to be implemented in order to achieve a ● consistent and efficient Group permanent control system, and assessing progress made on corrective measures adopted subsequent to recommendations issued by the Group Inspection

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Registration document 2018