Groupama // Universal Registration Document 2022

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CORPORATE GOVERNANCE AND INTERNAL CONTROL Internal control procedures

(a)

Group Financial Risk Management Committee (CRFG)

3.5.3.2 3.5.3.3 Cross ‑ functional committees In addition to the specific Risk Management Committees (CRG, specialised committees by risk category, and capital Management Committee), the Group Risk Management and Compliance Director chairs two cross ‑ functional committees, allowing him to coordinate two important areas involved in the control of the Group’s risks: the partial internal model and data quality. Internal Model Group Committee (CGMI) The CGMI, led by the Group Actuarial Department (in charge of modelling) and by the Group Risk Management, Control, and Compliance Department (in charge of independent validation of the model), is a body for decision ‑ making and discussions between the various departments involved in or concerned by the internal model. As such, it takes an active role in the process of validating and changing the internal model. Its responsibilities are defined and detailed in the internal model policy. It reports to the Group Insurance Risk Management Committee, which has a role of consultation and guidance in such matters. It reports to the Group Risk Management Committee, the final decision maker with regard to major changes to the model, before approval by the Board of Directors. Group Data Quality Committee (CGQD) The CGQD, coordinated by the Group Management Control function, defines the Group data quality policy, verifies its operational implementation and manages projects necessary to improve data quality. Under the internal model, the CGQD ensures that the data quality (completeness, accuracy, relevance) is sufficient both for entry of the model into validation of the capital management policy; ❯ monitoring of the implementation of the capital management plan; ❯ monitoring of the Group’s solvency risk; ❯ validation of the internal assessment of risks and the solvency of all Group entities at Group level. ❯ (a) (b) Assurances Mutuelles departments that are “owners” of the main identified operational risks and chaired by the General Secretary, it is responsible for: identifying and assessing operational risks (including compliance and reputation) and overseeing their consideration within the entities; ❯ defining and checking the budgets and operational risk limits consistent with the Group risk tolerance; ❯ monitoring all Group operational risks, particularly major Group operational risks; ❯ defining the policy for hedging against operational risks (operating risk insurance, BCP, etc.); ❯ alerting the Group’s Executive Management where appropriate. ❯ Capital Management Committee The main objectives of this committee are:

(b) The Group financial risk Management Committee is made up of the deputy Chief Executive Officer (Chairman), the heads of the Group Finance and Investment Departments, the Group risk management and Compliance Director, and representatives of the French Subsidiaries/International Subsidiaries Departments and banking and Asset Management subsidiaries. It is responsible for proposing to the Group Risk Management Committee the policy and rules governing the acceptance and retention of financial risks. In this context, it: identifies and evaluates financial risks; ❯ proposes asset risk limits at Group level and entity level as well as hedging principles; ❯ checks the proper application of these limits by the Group’s entities and proposes action plans; ❯ validates any exemptions and/or the establishment of action plans; ❯ reviews the models and methodologies for assessment of financial risks ( e.g. Asset/Liability Management, valuation, etc.) and the limits of these models; ❯ defines stress test scenarios for financial risks, evaluates their consequences, and proposes a modus operandi in case of occurrence of a financial shock; ❯ alerts the Group’s Executive Management where appropriate. ❯ The Group insurance risk Management Committee is made up of the deputy CEO in charge of the Group Insurance and Services Department (Chairman), the heads of the insurance, agricultural, PSO management and coordination, reinsurance, Group actuarial, and Group risk management, control, and Compliance Departments, representatives of the international subsidiaries and Groupama Gan Vie. It is responsible for proposing the policy and rules governing the acceptance and retention of insurance risks to the Group risk Management Committee. In this context, it: identifies and evaluates insurance risks; ❯ examines the commitment levels at the Group level and the main guidelines; ❯ defines stress test scenarios on insurance risks, evaluates their consequences, and proposes a modus operandi in case of occurrence; ❯ monitors governance and the performance of the internal model for insurance risks ( e.g. decision for major change of the model); ❯ checks the proper application of the process for development and compliance of new products (life and non ‑ life) with the Group risk management policy; ❯ alerts the Group’s Executive Management where appropriate. ❯ Group Insurance Risk Management Committee (CRAG)

(c)

Group Operational Risk Management Committee (CROG)

Composed of the heads of the Group Risk Management, Control, and Compliance Department and the Groupama

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES

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