BPCE_PILLAR_III_2017

NON-COMPLIANCE RISKS, 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 GROSS LOSSES BY BASEL BUSINESS ➡ LINE

BREAKDOWN OF GROSS LOSSES BY BASEL ➡ CATEGORY

Corporate Finance 1%

Asset Management 13% Branch Services 0%

Internal fraud 2%

Execution, delivery and process management 30%

Trading and Sales to Institutional Clients 15%

Business interruption and system malfunctions 0%

Retail Brokerage 0%

Payment and settlement 14%

External fraud 42%

Damage to property, plant and equipment 1%

Commercial Banking 28%

Retail Banking 28%

Customers, products and commercial practices 25%

Employment and occupational safety practices 0%

56% of Groupe BPCE’s losses were generated by the following two business lines: retail banking(28%); ● commercial banking (28%). ●

Gross losses are predominantly generated in the following Basel categories: “fraud”, “execution,delivery and proceduremanagement” and “customers, products and commercial practices”.

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Risk Report Pillar III 2017