BPCE - 2018 Registration document

6 RISK REPORT

Risk governance and management system

it assesses the risk management system, in particular by examining ● the results produced by the internal control system (permanent and periodic controls). Identifying potential areas of risk helps strengthen the internal control system and allocate permanent and periodic control resources where they are needed;

it serves as a source of information for various documents, ● including the internal control annual report, ICAAP report, documentation for JST meetings, etc.

GOVERNANCE OVERSIGHT

POST-RISK MANAGEMENT SYSTEM RISK + FORWARD- LOOKING VIEW Accepted risk

EXPOSURES

RISK MANAGEMENT SYSTEM

Incurred risk, Chosen risk

Quality, Controls, Resources

RISK IDENTIFICATION AND ASSESSMENT

Credit Risks

Financial Risks

Non- Financial Risks

Other Risks

IDENTIFICATION • ANALYSIS • ASSESSMENT • TREATMENT

Activities in 2018 Macro-level risk mapping – Group institutions consolidation of 2017 macro-level risk mapping by network. Each ● institution is able to compare the results of its own macro-level risk mapping with those of its network; consolidation of action plans set up by the institutions on their ● priority risks; formalization of links between PILCOP permanent controls ● established by each institution and its priority risks;

review of the 2018 version of the macro-level risk mapping ● methodology, covering all main Group institutions, with key changes including the alignment with the Group’s internal risk standards, the automated incorporation of non-financial risks ( osirisk version), and the inclusion of back-testing, stress testing and risk materiality exercises; in the 2018 macro-level risk mapping exercise, each institution was ● also able to determine the materiality of its own risks.

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Registration document 2018