GROUPAMA / 2018 Registration document

RISK FACTORS AND RISK MANAGEMENT RISK MANAGEMENT AND SENSITIVITY ANALYSES

Groupama Assurances Mutuelles 5.2.1.2 and its subsidiaries Subsidiary riskis subject to triplemonitoring: inter-company monitoring by the Groupama Assurances ❯ Mutuelles business, functional, or support departments specialisingin the area in question, asindicatedabove; ongoing monitoringby the services of the division to which they ❯ are attached: Group Finance Department for financial subsidiaries, ■ Group Insurance and Services Department for the Non-Life ■ insurance subsidiaries, the French service subsidiaries, Orange Bank, andGroupamaSupports& Services, Groupama Gan Vie’s Executive Management for the life ■ insurance subsidiary and the distribution subsidiaries Gan Patrimoine andGan Prévoyance, International Subsidiaries Department for international ■ subsidiaries; monitoring by each subsidiary or EIG of Groupama Assurances ❯ Mutuelles as part of the responsibility of its Directors and in accordancewith Group standards.Followingthe example of the regional mutuals, the Group Risk Management, Control, and Compliance Department supports Groupama Assurances Mutuelles and its subsidiaries in monitoring and rolling out the internal control and risk management procedure. With regard more particularly to Groupama Gan Vie, the Regulatory and Environmental Management Committee addresses all the complianceissues ofthis subsidiary. All of the risk management and Internal Control Managers of the French and international subsidiaries supplement the plan and meet regularly within the framework of information exchange and best practices bodies (workgroups,theme-basedworkshops, and training), led by the Group Risk Management, Control, and Compliance Department. The Groupama AssurancesMutuelles Board of Directors, with the assistance of the audit and Risk Management Committee, nearly half of whose members are Independent Directors, is responsible for the validation and monitoring of the risk managementstrategy, its implementation and future directions, the validation of risk policies, the review of the consistencyof internal control work, and the monitoringof risks. Lastly, the Board of Directors, particularly through the Groupama Assurances Mutuelles Audit and Risk Management Committee, is included in the Group’s various tasks for the application of the Solvency 2 directive, including work relating to ORSA particularly with the validation of stress scenario assumptions and the examination of the ORSA report for validation by the Board of Directors. Group 5.2.1.3 The Group’s general audit function carries out several types of audits, including a global economic and financial audit of the Group’s main entities on a three-year basis, in addition to the operational audits conducted within the entities, audits on the Groupama Assurances Mutuelles processes and the Group’s cross-functional processes, and audits performed on behalf of some entities as part of the pooling of the Audit key function with Groupama Assurances Mutuelles. The audit plan of the Group

the Capital Management Committee consisting of the Deputy ❯ CEO, the Chief Financial Officer, the Director of Risk Management, Control, and Compliance, the Investment Directors, the Finance Director, the Solvency 2Director, and the representative of the International Department in charge of monitoring international subsidiaries. Similar systems are inplace at the entitylevel. In addition, a committee for the implementation and sharing of objectives, decisions, and best practices between the Group’s entities has been set up. This ARC Operation Committee (Audit, Risk, and Control operational implementation committee) is coordinated by the Group Risk Management, Control, and ComplianceDepartmentand the GroupGeneral Audit Department. It brings together the regional mutuals, the main insurance subsidiaries inFrance, and Groupama Supports & Services (G2S). Regional mutuals 5.2.1.1 As autonomous legal entities, the regional mutuals implement their own internal control measures and manage their risks in compliance with the Group’s standards. These systems are adapted to each regional mutual based on its organisation, its activities and its resources, under the authority of the Executive Management. Regarding organisation and governance, the roles and responsibilities of the administration and executive management bodies, key functions, and operational or support departments involved in risk management are specified in the risk policies. The Group Risk Management, Control, and Compliance Departmentsupports the regional mutuals in monitoringand rolling out Group standards. All of the Risk Management and Permanent Control/Compliance Managers of the regional mutuals supplement the plan and meet regularly within the framework of information exchange and best practices bodies (workgroups, theme-based workshops and training), directed by the Group Risk Management, Control, and Compliance Department; work relating to the implementation of Pillar 2 of Solvency 2 isalso handled there. The regional mutuals are reinsuredwithin the specific frameworkof an exclusive reinsurance agreement entered into between them and Groupama Assurances Mutuelles (General Reinsurance Regulations).The General ReinsuranceRegulations of the regional mutuals are one of the primary insurance risk control systems. The principles and rules of reinsurance are formalised in the reinsurance policies ofthe Group andentities. For the risks related to the distributionof banking products and life insurance, the regional mutuals apply, in coordination with the Group Risk Management, Control, and Compliance Department, the risk management procedures defined by Orange Bank and Groupama Gan Vie.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES

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