BPCE - 2018 Risk report / Pillar III

4 RISK GOVERNANCE AND MANAGEMENT SYSTEM Recovery Plan

Recovery Plan 4.3

BPCE’s Supervisory Board approved the Group’s Recovery Plan (RP) for 2018. The plan is in line with Europeanregulatorymeasureson the recovery and resolution of banks and investment firms and the provisions of the FrenchMonetaryand Financial Code. The objective of the Recovery Plan is to identify measures to restore the Group’s financial solidity in the event it deteriorates significantly. The plan presentsthe optionsavailableto the Group to launch a crisis managementsystem.It assessesthe relevanceof the differentoptions in variouscrisis scenariosand the methodsand resourcesavailablefor their implementation. The RecoveryPlan is mainlybased onthe: the Group’s organization and the specific implications of its ● cooperative status; identification of the Group’s critical responsibilities; ● capital and liquidity management systems; ● analysis of financial crisis scenarios; ● mapping of the main entities and an analysis of their contribution ● in terms of capital adequacy, liquidity and earnings capacity;

identificationof the options that will have a significantimpact on ● the Group’s financial recovery; preventativemonitoring of leading indicators on the financial and ● economic situation; establishment of the organizational structures needed to ● implement the recovery. This system is monitored and coordinated by a permanent office at BPCE. The RecoveryPlan is kept up to date and approvedby the Supervisory Board, aided by its RiskManagement Committee for these purposes. The RecoveryPlan is updated annually. In addition to updating its Recovery Plan, the Group ran a test to make sure it would be able to mobilize quickly to handle a financial crisis impacting its solvency. During the simulation, the Group successfully rallied several of teams and its Executive Management Committee. This test, recommended by the supervisory authorities, will be periodicallyreiteratedwith the aim of improving the Group’s crisis readiness.

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Risk Report Pillar III 2018