BPCE - 2018 Risk report / Pillar III

11 NON-COMPLIANCE, SECURITY AND OPERATIONAL RISKS Operational risks

Operational risk measurement

Groupe BPCE applies the standardizedapproach to calculate its capital requirements.Moreover, elements of internal control are consideredin the assessment of the Group’s net risk exposures.

BREAKDOWN OF LOSSES BREAKDOWN OF LOSSES BY BASEL BUSINESS LINE ➡

BREAKDOWN OF LOSSES BY BASEL LOSS EVENT ➡ CATEGORY

Corporate Items 2%

Corporate Finance 1%

Internal Fraud 6%

Asset Management 8%

Execution, Delivery and Process Management 51%

External Fraud 23%

Payment & Settlement 23%

Trading & Sales 60%

Clients, Products and Business Practices 19%

Commercial Banking 2% Retail Banking 4%

Business Disruption and System Failures 0%

Damage to Physical Assets 1%

51% of gross losses (includinglosses associatedwith model risk) were recorded under “Execution, delivery and process management”.

Retail Brokerage 0%

60% of the biggest losses (including losses associated with model risk) were recorded under “Trading and Sales”.

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Risk Report Pillar III 2018