BPCE - 2019 Universal Registration Document

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RISK REPORT

RISK MANAGEMENT SYSTEM

ROBUST FINANCIAL STRENGTH Groupe BPCE enjoys high liquidity and solvency levels: in terms of solvency, the Group is able to absorb, if need be, • the occurrence of a risk at entity or Group level; in terms of liquidity, the Group has a significant reserve • consisting of cash and securities enabling it meet regulatory requirements, pass stress tests and access central bank unconventional financing mechanisms. It also has a sufficient amount of high-quality liquid assets eligible for market funding mechanisms and those offered by the European Central Bank. The Group ensures the robustness of this system by conducting comprehensive stress tests on a regular basis, with the aim of verifying the Group’s potential resilience, particularly in the event of a major crisis.

a resilience limit which, if breached, exposes the Group to • potential business continuity and/or stability risk. Any such breach must be reported to the BPCE Supervisory Board and addressed by a specific action plan validated by the Board; an extreme limit in conjunction with the Group’s resolution • and recovery plan which, if breached, could jeopardize the Group’s very survival. This extreme limit concerns certain indicators adopted in respect of the Group’s risk appetite. A quarterly dashboard is prepared by the Group’s Risk division, for the purpose of regularly and extensively monitoring all risk indicators and reporting to the supervisory body or/and any committee thereof. The risk appetite framework is adapted by the entities for consistent group-wide implementation.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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