NATIXIS_REGISTRATION_DOCUMENT_2017

RISKS AND CAPITAL ADEQUACY Operational risks

Identifying losses and incidents

Listing and analyzing incidents Incidents are listed as they occur. In 2017, an optional reporting threshold of, respectively, €5,000 for the Corporate & InvestmentBanking and Asset Managementbusiness lines and €1,500 for Specialized Financial Services, Insurance and Private Banking was introduced in line with BPCE standards. A single definition of “serious incident” is used, in compliance with Groupe BPCE standards (€300,000 gross).All serious incidents (above the defined thresholdor deemedserious by the business line and the Operational Risk Department) are reported immediately to the business line’s managementand to Natixis’ Chief Risk Officer. Following an investigation involving all relevant parties, the operational risk manager of the business line compiles a standardized full report, including a factual description of the event, the analysis of the initial cause, the description of the impact and the proposed corrective actions. At all levels of the Bank, the business line Operational Risk Committees review their serious incidents, decide on the corrective actions to be implemented, propose the relevant deadlines and targets, and

monitor their progress. The entities and business lines can decide to apply these measuresto their own threshold,which is lower than that of Natixis and consistent with its activity and level of risk. Most operational risk incidents occur frequently and have a low impactper incident. Overall trend of reported incidents In 2017 over 5,300 reported incidents (a single incident potentially comprisingseveral individual incidents) were entered into the collection tool by the business lines. The Specialized Financial Services divisionmakes up close to half of the number of reported incidents, but accounts for only 11% of impacts. However, Corporate & Investment Banking activities in France and abroad account for more than 80% of the amount of losses and provisions reported in 2017, with these activities representingonly 10%of the listing in number.

3

BREAKDOWN OF REPORTED INCIDENTS BY BUSINESS AND DATE ■

6,000

5,000

4,000

2015 2016 2017

3,000

2,000

1,000

0

Asset & Wealth Management

Corporate & Investment Banking

Functional Departments

Insurance

Corporate Center

Specialized Financial Services

BREAKDOWN OF REPORTED INCIDENTS BY NET AMOUNT BY DATE AND BASEL CATEGORY ■

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

2015 2016 2017

Commercial customers, products and practices

Execution, delivery and procedures

External fraud Employment and safety practices

Damage to property plant and equipment

Internal fraud Business interruption and information system de ciencies

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Natixis Registration Document 2017