BPCE_PILLAR_III_2017

4 GOVERNANCE AND RISK MANAGEMENT SYSTEM Governance of risk management

Macro-level risk mapping plays a central role in an institution’s overall risk management system: it is closely linked to the risk appetite system by establishing the ● institution’s risk profile and determining its priority risks; it contributes to the Group’s SREP – Supervisory Review and ● Evaluation Process – by identifying the its main risks from a risk managementand supervisory standpoint;

it assesses the risk managementsystem, in particularby examining ● the results of the internal control system (permanentand periodic controls). Identifying potential areas of risk helps enhance the internal control system and allocate control resources where they are needed; it serves as a source of information for various documents, ● including the internal control annual report, ICAAP report, documentation for JST meetings, etc.

GOVERNANCE OVERSIGHT

POST-RISK MANAGEMENT SYSTEM RISK + FORWARD- LOOKING VISION Assumed risk

EXPOSURES

RISK MANAGEMENT SYSTEM

Imposed risk, Chosen risk

Quality, Controls, Resources

RISK IDENTIFICATION AND ASSESSMENT

Credit Risks

Financial Risks

Non- Financial Risks

Other Risks

IDENTIFICATION • ANALYSIS • ASSESSMENT • TREATMENT

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Risk Report Pillar III 2017