BPCE - Risk Report - Pillar III 2020

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 policies contracted from leading Insurance companies. In addition, the Group has set up its own captive insurance company. COVERAGE OF INSURABLE RISKS On January 1, 2020, BPCE SA had taken out (for itself): that of its subsidiaries, including Natixis; • and for the Banque Populaire and Caisse d’Epargne networks, • except for Caisse d’Epargne Rhône Alpes, covering: 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 in point A.d) below; and the Insurance coverage for “Property Damage” to – “Registered Offices & Similar” and to their contents (including IS equipment) and the consecutive losses in banking activities described in point E below. The following main Insurance policies to cover its insurable operational risks and protect its balance sheet and income statement: combined “Global Banking (Damages to Valuables and A/ Fraud)” & “Professional Civil Liability” policy with a total maximum payout of €215.5 million per year of insurance, of which: €72.5 million per year, combined “Fraud/Professional Third a) Party Liability” and underlying the guaranteed amounts indicated in b) and/or c) and/or d) below; €48 million per claim and per year, solely reserved for b) “Global Banking” risk, €25 million per claim and per year, solely reserved for c) “Professional Civil Liability” risk,

€70 million per claim and per year, combined “Global d) Banking/Professional Civil Liability” insurance available in addition to or after use of the amounts guaranteed set out in b) and/or c) above. The maximum amount that can be paid out for any one claim under this arrangement is €118.5 million under “Professional Civil Liability” coverage and €119 million under “Fraud” coverage in excess of the applicable deductibles. “Regulated Intermediation Liability” (in three areas: Financial B/ Intermediation, Insurance Intermediation, Real Estate Transactions/Management) with a total maximum payout of €10 million per claim and per year. “Operating Civil Liability” covering €100 million per claim, as C/ well as a “Subsidiary Owner Civil Liability”/”Post Delivery-Reception Civil Liability” coverage extension for up to €35 million per claim and per year of insurance. “Company Directors Civil Liability” for up to €200 million per D/ claim and per year of insurance. “Property Damage” to “Registered Offices & Similar” and to E/ their content (including IS equipment) and the consecutive “losses in banking activities,” for up to €400 million per claim. “Protection of Digital Assets against Cyber-Risks” & the F/ consecutive “losses in banking activities,” for up to €140 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-retention capacity. 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-retention capacity.

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RISK REPORT PILLAR III 2020 | GROUPE BPCE