Groupama // 2021 Universal Registration Document

7 FINANCIAL STATEMENTS Combined financial statements and notes

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 Management, Control, and Compliance Operational Implementation Committee (Comop ARCC) is run by the Risk Management, Control, and Compliance Department and the Group General Audit Department, with Group’s Legal Department also involved. It brings together the regional mutuals, the French insurance subsidiaries, and Groupama Supports & Services (G2S). As for the international scope, meetings (four times a year), led by the Group Risk Department, are organised to discuss methodologies, Group schedules and the various risk issues of the subsidiaries and/or the Group with the Risk Managers of the international subsidiaries. 1.1 As autonomous legal entities, 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 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 management are 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 Managers from 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 implementation of 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 main risk management mechanisms. The principles and rules of reinsurance are set out in the reinsurance policies of 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

Group Insurance and Services Department for the Non-Life ■ insurance subsidiaries, the French service subsidiaries, and Groupama Supports & Services, Groupama Gan Vie’s Executive Management for the life ■ insurance subsidiary and the distribution subsidiaries Gan Patrimoine and Gan Prévoyance, International Subsidiaries Department for foreign subsidiaries; ■ monitoring by each subsidiary or the Groupama Assurances ❯ Mutuelles G2S joint venture as part of the responsibility of its Directors and in accordance with Group standards. Following the example of the regional mutuals, the Risk Management, Control and Compliance Department supports Groupama Assurances Mutuelles and its subsidiaries in monitoring and implementing the internal control and risk management procedure. As regards Groupama Gan Vie more particularly, the Regulatory and Environment Management Committee addresses all of its compliance issues. All of the Risk and Internal Control Managers from French and international subsidiaries are part of the 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. The Groupama Assurances Mutuelles Board of Directors, with the assistance of the Audit and Risk Committee, nearly half of whose members are Independent Directors, is responsible for the validation and monitoring of the risk management strategy, its implementation and future directions, the validation of risk policies, the review of the consistency of internal control mechanisms, risk monitoring, and reviews of internal audit work. Lastly, the Board of Directors, particularly through the Groupama Assurances Mutuelles Audit and Risk 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 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 Department also conducts on Groupama Assurances 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 Assurances Mutuelles. The audit schedule of the Group General Audit Department is defined by the Executive Management 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 Executive Management of Groupama Assurances Mutuelles, the Group

1.2

Groupama Assurances Mutuelles and

its subsidiaries Subsidiary risk is monitored in three ways:

Inter-company monitoring by the Groupama Assurances ❯ Mutuelles business, functional and support departments specialising in the area in question, as indicated above; on-going monitoring by departments in the division to which it is ❯ attached: Group Finance Department for financial subsidiaries, ■

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES