BPCE - 2018 Risk report / Pillar III

RISK GOVERNANCE AND MANAGEMENT SYSTEM Governance of risk management

Training programs A large number of training programsand materialswere rolled out or enhanced in2018: annual training plan for the Group Risk and Compliance function: ● the “riskand complianceacademy”; roll-outat all Group institutionsof the bankingrisk awarenessquiz, ● called “Risk Pursuit”, designed in gaming format and available for multiple devices, including tablets; design of the training materials on the Group code of conduct and ● ethics; launch of the three-day Compliance training course for the Risk, ● Compliance and Audit functions; establishment of a new risk and compliance training program ● specifically designed for inspectors of the Group’s Inspection Générale division. Coordination and exchange of best practices Coordinationof credit exposure managers, initially rolled out on the Banque Populaire network in 2017, expanded to include the Caisse d’Epargne network and the subsidiaries. Measurement of risk management and compliance culture at Group institutions A project is under way to establish a self-assessmentsystem via risk managementand complianceculture indicatorsat Group institutions, and is scheduledto be launched in2019.

ACTIVITIES IN 2018 Macro-level risk mapping – Group institutions consolidationof 2017 macro-level risk mapping by network. Each ● institutionis able to comparethe results of its own macro-levelrisk mappingwith 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 itspriority 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-levelrisk mappingexercise,each institutionwas ● also able to determine the materiality of its own risks.

4

69

Risk Report Pillar III 2018