GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

monitoring by each subsidiary or the Groupama Assurances ❯ Mutuelles G2S joint venture as part of the responsibility of its Directorsand in accordancewith Groupstandards.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 managementprocedure. With regard more particularly to Groupama Gan Vie, the Regulatory and Environmental Management Committee addresses all the compliance issues of this subsidiary. All of the Risk Management and Internal Control Managers of the Frenchand internationalsubsidiariessupplementthe plan and meet regularly within the framework of information exchange and best practices bodies (workgroups, theme-based workshops, 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 monitoringof the risk managementstrategy, its implementation and future directions, the validation of risk policies, the review of the consistencyof internal control work, and the monitoring of 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 II Directive, including work relating to ORSA particularly with the validation of stress scenario assumptions and the examination of the ORSA report for ratification by the Board of Directors. 1.3 The Group General Audit Department conducts several types of audits, including a general economic and financial audit of the Group’s entities, generally on a three-year basis and at the latest every five years, in addition to the operational audits conducted within the entities. For large entities, these audits may be conducted more frequently and cover smaller scopes. The Group General Audit Departmentalso conductson GroupamaAssurances Mutuelles processes and on the Group’s cross-functional processes, in which several entities may be involved, with the support of the entities’ Internal Auditing Departments. Lastly, the Group General Audit Department conducts audits on behalf of some entities as part of the pooling of the Audit key function with Groupama AssurancesMutuelles.The audit scheduleof the Group General Audit Departmentis definedby the ExecutiveManagement of Groupama Assurances Mutuelles and validated by the Groupama Assurances Mutuelles Audit and Risk Management Committee and the Board of Directors of Groupama Assurances Mutuelles. Every mission involves a review of the risk and internal control system for the activity or entity audited, and a mission report is prepared presenting the observations, findings, and recommendations to the Executive Management of the audited entities. A regular summary of the missions is provided to the Senior Managementof GroupamaAssurancesMutuelles, the Audit and Risk Management Committee, and the Group Executive Committee for cross-functional audits. A quarterly report on the progress of the recommendations is given to the Groupama Assurances Mutuelles Board of Directors and its Audit and Risk Committee. Group

Similar mechanisms are in place at the entity level. 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 Audit, Risk, Control, and Compliance Operational ImplementationCommittee (Comop ARCC) is run by the Risk Management, Control, and Compliance Department and the GroupGeneralAudit Department,with GroupLegal Department involvement. It brings together the regional mutuals, the French insurance subsidiaries, and Groupama Supports & Services (G2S). 1.1 As autonomouslegal entities, regionalmutuals implementtheir own internal controlmeasuresand managetheir risks in compliancewith 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 its Senior 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 managementare specified in the risk policies. The Group Risk Management, Control and Compliance Department supports the regional mutuals in monitoring and implementing Group standards. All of the Risk Management and Permanent Control/Compliance Managersfrom regional mutuals are also part of this plan and meet regularly at information exchange and best practices forums (workgroups, theme-based workshops and training), run by the Group Risk Management, Control and Compliance Department; work relating to the implementationof Pillar 2 of Solvency II is also handled there. Regional mutuals are reinsured under an exclusive reinsurance agreement between them and Groupama Assurances Mutuelles (General Reinsurance Regulations). The General Reinsurance Regulations of the regional mutuals are one of the primary insurance risk control systems. The principles and rules of reinsuranceare set out in the reinsurancepoliciesof the Group and entities. For risks related to the distribution of banking products and life insurance, the regional mutuals apply the risk management procedures defined by Orange Bank and Groupama Gan Vie, in conjunction with the Risk Management, Control and Compliance Department. Regional mutuals inter-company monitoring by the Groupama Assurances ❯ Mutuelles business, functional and support departments specialising in the area in question, as indicated above; on-going monitoringby departmentsin the division to which it is ❯ attached: Group Finance Department for financial subsidiaries, ■ Group Insurance and Services Department for the Non-Life ■ insurance subsidiaries, the French service subsidiaries, and Groupama Support & Services, GroupamaGan Vie’s Senior Managementfor the life insurance ■ subsidiary and the distribution subsidiaries Gan Patrimoine and Gan Prévoyance, International Subsidiaries Department for foreign subsidiaries; ■ Groupama Assurances Mutuelles 1.2 and its subsidiaries Subsidiary risk is subject to triple monitoring:

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Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES