BPCE_PILLAR_III_2017

11 NON-COMPLIANCE RISKS, SECURITY AND OPERATIONAL RISKS Operational risks

Operational risk mitigation techniques In terms of insurance, the networks and subsidiaries benefit from coverage of their insurable operational risks under group insurance policiescontractedfrom leadinginsurancecompanies.In addition,the Group has set upits own captive insurance company.

out in b) and/or c) and/or d) below (with Natixis also holding its own similar coverage with a maximumpayout of € 15 million per year); € 38 million per claim and per year, solely reserved for “Global b) Banking” risk; € 25 million per claim and per year, solely reserved for c) “Professional CivilLiability”risk; € 70 million per claim and per year, combined “Global d) Banking/ProfessionalCivil Liability”insuranceavailablein addition to or after use of the amounts guaranteedset out in b) and/or c) above. The maximumamount that can be paid out for any one claim under this arrangement is € 109.75 million under “Professional Civil Liability” coverage and € 109.75 million under “Fraud” coverage in excess of the applicable deductibles. B. “Regulated Intermediation Liability” (in three areas: Financial Intermediation, Insurance Intermediation, Real Estate Transactions/Management) with a total maximum payout of € 10 million per claim and per year. C. “OperatingCivil Liability” covering € 100 million per claim, as well as a “Subsidiary Owner Civil Liability”/”PostDelivery-ReceptionCivil Liability” coverage extension for up to € 30 million per claim and per year of insurance. D. “CompanyDirectorsCivil Liability”for up to € 200 million per claim and per yearof insurance. E. “Property Damage” to “Registered Offices & Similar” and to their content (including IT equipment) and the consecutive “losses in the consecutive “losses in bankingactivities”,for up to € 100 million per claim and per year of insurance. This coverage extends worldwide for initial risk or umbrella risk, subject to certain exceptions, mainly in terms of “Professional Civil Liability” where the policy does not cover permanent institutions based in the United States (where coverage is obtained locally by Natixis’ US operations). All the insurance policies mentioned above were taken out with reputable, creditworthy insurance companies and in excess of the deductibles and Groupe BPCE’s risk-retentioncapacity. banking activities”,for up to € 300 million perclaim. F. “Protectionof Digital Assets againstCyber-Risks”&

COVERAGE OF INSURABLE RISKS At January1, 2017, BPCE SA had takenout, for itself:

and for its subsidiaries, with the exception of Natixis concerning ● the insurance coverage described in point A.a) below, with Natixis also holding its own similar coverage with a maximum payout of € 15 million per year, and for the Banque Populaire and Caisse d’Epargne networks, ● except for: Caisse d’Epargne Rhône Alpes concerning: ● the “Fraud” component of the insurance coverage described in - point A.a) below, the “Global Banking” insurance coverage described in point A.b) - below, the “Global Banking” component of the insurance coverage - described inpoint A.d) below, and the insurancecoveragefor “PropertyDamage”to “Registered - Offices & Similar” and to their contents (includingIT equipment) and the consecutivelosses in bankingactivitiesdescribedin point E below; Caisse d’Epargne Ile-de-France concerning: ● the “Fraud” component of the insurance coverage described in - point A.a) below, the “Global Banking” insurance coverage described in point A.b) - below, the “Global Banking” component of the insurance coverage - described inpoint A.d) below. the following main insurance policies to cover its insurable operationalrisks and protectits balance sheet and incomestatement: A. A combined “Global Banking (Damages to Valuables and Fraud)” & “ProfessionalCivil Liability”policy with a total maximumpayout of € 178 million per year of insurance, of which: € 30 million per year, combined “Fraud/ProfessionalCivil Liability” a) insurance available, subordinate to the amounts guaranteed set

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Risk Report Pillar III 2017