NATIXIS // 2021 Universal Registration Document

3 RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk management

Within Natixis, the Asset and Liability Management Committee (the “ALMCommittee”) is a Senior ManagementCommittee chaired by the Chief Executive Officer. It acts as a relay for the Group Strategic ALM Committee for the activities it hosts. This bimonthly Committee brings together members of the Senior Management Committee in charge of the Finance division, the Risk division and the CIB, representatives of the CIB business lines, the head of the BOAT (“buffer, financial operations, ALM and treasury”), the head of the BPCE/Natixis liquidity pool (of which Natixis treasury is a part), the members of SBSR (“Structural Balance Sheet Risk”), and representatives of BPCE’s Financial Management division and Risk division. The main missions of this Committee are: overseeing the implementationof ALM strategies and policies set V by the central body within Natixis; overseeing the management of ALM constraints allocated by the V Group to Natixis; validationof the liquidity envelopesallocated to the business lines V as part of the annual budgetary procedure and in connectionwith the market footprint envelope allocated by the Group Strategic ALM Committee; pre-validation of Natixis’ contribution to Groupe BPCE’s annual V medium-term funding program; validation of internal ALM sub-limits within the Natixis scope in V line with the overall limits allocated by the Group; validation of the internal liquidity pricing policy; V approval of ALM documentation (standard, LMP, etc.). V The BOAT Department ensures the implementation of decisions taken by this Committeeby executingor coordinatingthemwith the other business lines. It thus exercises the first line of defense (LoD1) and operates under the control and within the mandates overseen by the second line of defense (LoD2) of the SBSR Departmentof the Risk division. the Risk division, which is responsible for independently evaluating the structural ALM risk monitoring system, second-level controls on cash and ALM indicators (dedicated SBSR Department), and the approval of identified ALM methods for use in a model (dedicated Model Risk & Risk Governance Department). The Risk division also proposes the limits specified under the risk appetite system, which are validated by the Board of Directors.

centralization of liquidity management and access to the liquidity V markets within a crossentity and cross-border liquidity pool supervised by BPCE and operatingfrom the balance sheet of both BPCE S.A. and Natixis S.A. (e.g. via its EMEA, Americas and APAC platforms). This organizationfacilitates the application of a single pricing policy and optimizes the cost of funding and facilitates the liquidity circulation within the Group; a strategy of diversifyingsources of funding by geographicalarea, V currency, counterparty,maturity and product to ensure stable and long-term funding of activities regardless of currency or geographical location, while ensuring that the market footprint is contained; a risk policy aiming to promote adequacy in terms of maturity V between uses and resources within the framework of the Group’s risk appetite, in order to ensure the respect of its commitments towards its customers, and of its regulatory and economic constraints; a strategy of generatingcollateral and maintainingliquidity buffers V to preserve business continuity in case of liquidity turmoil. This policy, this organization, and this strategy apply to all affiliates and are applied to the Natixis scope, which is responsible in part for its execution through the common liquidity pool. Monitoring system (Data certified by the Statutory Auditors in accordance with IFRS 7) The steering, management, measurement and supervision of this risk are based on the following Group system: periodic measurement and monitoring of Natixis’ contribution to V the Group’s market footprint in order to preserve Groupe BPCE’s loan-to-deposit ratio and rating; periodic measurement and monitoring of gross unsecured V liquidity consumption of each business line with the Treasury in order to contain the bank’s funding needs within the frameworkof the financial resources and market footprint allocated by the Group; periodic measurementand supervision of the Natixis contribution V to the short and medium-term liquidity mismatches of Groupe BPCE into liquidity in order to promote the adequacy of the maturity of resources with that of uses. It is supplemented internally by a measure of the ratios coverage between assets and liabilities; periodic liquidity stress measurements designed to test Groupe V BPCE’s resistance to adverse scenarios of a systemic, idiosyncratic or combined nature affecting its liquidity over different time horizons; measures with observation thresholds for Natixis’ contribution to V the Group’s funding structure to oversight the Group’s funding and diversification policy; periodic tests of the unsecurred overnight market for assessing V the depth of credit limits opened by investors on Groupe BPCE.

Management of liquidity 3.2.8.2 and funding risk Targets and policy

(Data certified by the Statutory Auditors in accordance with IFRS 7) Groupe BPCE’s funding policy, strategy and organization in which Natixis participates are placed under the aegis of the Group Strategic ALM Committee. They are based in particular on: a capital accumulation and preservation strategy to defend, V strengthen and promote Groupe BPCE’s credit signature and rating on international liquidity markets;

148

NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021