NATIXIS - 2018 Registration document and annual financial report

3

RISK FACTORS, RISK MANAGEMENT AND PILLAR III

3.1

RISK FACTORS

3.3 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 3.3.6 3.3.7 3.3.7

BASEL 3 PILLAR III DISCLOSURES 166 Capital management and capital adequacy 166

109 109 110 111 113

Credit risks

180

Financial risks

Other regulatory ratios

Breakdown and changes in risk-weighted

Non-financial risks

assets

182 210 211 214 215 216

Strategic and business risks

Encumbered and unencumbered assets Liquidity requirement coverage ratio

Risks related to Insurance activities 114 Risk related to holding Natixis securities 115 RISK MANAGEMENT 116

Compensation policy Cross-reference table

3.2 3.2.1

Organization of Natixis’ internal control

Table index

system

116 119 124 135 135 142 147 154 158 160 164

Governance and risk management system

3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.2.7 3.2.8 3.2.9

Credit and counterparty risks Securitization transactions

Market risks

Operational risks

Balance sheet management

Compliance risk

Legal risks

Other risks 3.2.10

At-risk exposures 3.2.11

This chapter includes information on the risk factors set out under Prospectus regulation 3 on the management of risks associated with financial instruments, as well as information on capital management and compliance with the regulatory ratios required under the IFRS framework as adopted in the European Union. Some information in this chapter is an integral part of the notes to Natixis' consolidated financial statements and consequently falls under the Statutory Auditors' certification of the consolidated financial statements. This information is identified by the phrase “Data certified by the Statutory Auditors in accordance with IFRS 7”. Natixis is subject to the supervision of regulatory authorities and to the regulatory capital requirements applicable to credit institutions and investment companies, as per EU regulation No. 575/2013 of June 26, 2013. Under Pillar III of the Basel Accords, detailed, standardized information on items related to the Basel 3 report and to prudential publications is published in the third part of this chapter.

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Natixis Registration Document 2018