NATIXIS_PILLAR_III_2017_EN

GOVERNANCE AND RISK MANAGEMENT ORGANIZATION Risk appetite

RISK APPETITE FRAMEWORK 2.4.2

It is regularly reviewed, consolidated and presented to the Board of Directors’ Risk Committee. The Risk Appetite Framework forms part of Natixis’ overall processes, especially with regard to: risk identification: every year risks are mapped in order to have a an overview of the risks to which Natixis is or could be exposed. With this approach it is possible to identify material risks, the indicators of which are included in the risk appetite framework; in the budget process and overall stress tests. a In accordance with regulations concerning systemic financial institutions, Groupe BPCE has drawn up a recovery and resolution plan (PRR).

For each identified risk and selected indicator, the risk appetite operating mechanism relies on two successive levels: an overall limit setting the risk envelope allocated to the a businesses; and a warning threshold on the maximum risk which, if a exceeded, would pose a risk to Natixis’ business continuity and/or stability. This operational framework is applied by type of risk (credit and concentration risk, market risk, liquidity and leverage risk, operational risk, solvency risk, etc.) and draws on Natixis’ pre-existing measuring and reporting systems.

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NATIXIS Risk report Pillar III 2017