NATIXIS - Universal registration document and financial report 2019

3 RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk management

The information contained in the above table excludes Insurance activities.

31/12/2018

Less than 1 month

1 to 3 months

3 to 6 months

6 months to 1 year

1 to 2 years

2 to 5 years

Over 5 years Undated

(in billions of euros)

Total Demand

Amounts due to central banks

0.0

0.0

Other financial liabilities held for trading purposes — excluding trading derivatives

124.7

15.2

63.5

9.9

1.8

4.1

1.4

3.7

4.3

20.8

o/w repurchase agreements Secured debt Unsecured debt

90.9

15.2

63.4

9.4

0.5

1.0

0.0

0.9

0.5

- -

- -

- -

- -

- -

- -

- -

- -

- -

Financial liabilities at fair value through profit or loss

28.7

-

1.7

7.3

2.6

3.4

3.1

6.6

4.0

o/w repurchase agreements Secured debt Unsecured debt

-

- - -

- -

-

-

-

-

-

-

1.0

0.1 2.9

0.0 2.6

0.0 3.3

0.8 2.3

0.0 6.6

0.0 4.0

23.1 57.2

1.4

Trading derivatives Hedging derivatives Amounts due to banks

57.2

0.7

0.7 0.2

76.8

5.9

14.6

14.6

4.8

6.0

9.8

17.8

3.0

o/w repurchase agreements

8.7

1.5

1.5 5.2

4.7 3.9

-

-

1.1 0.8

-

-

Customer deposits

36.0

15.9

1.3

5.5

0.4

1.0

2.2

o/w repurchase agreements

0.1

0.0

0.1 6.4 0.0

-

-

-

-

-

-

Debt securities

36.5

- -

12.2

8.5 0.1

5.3 0.1

1.0 0.1

2, 4 0.7

0.7 0.3

o/w covered bonds

1.3

0.0

Revaluation adjustment on portfolios hedged against interest rate risk

0.0 4.3

0.0 0.0

Subordinated debt

-

0.0

0.0

0.0

0.0

0.1

2.9

1.2

TOTAL

364.9

37.0

91.4

48.0

19.0

24.2

16.2

33.9

14.3

81.0

The information contained in the above table excludes Insurance activities.

Compliance risk 3.2.8

See 3.2.2 Governance and risk management system — Risk typology for a definition of compliance risk.

Accordingly, the Compliance Department participates in establishing standards, policies and procedures, and issues its opinion, particularly regarding the oversight of new business, products and organizations. It also conducts a regulatory watch and works with the Human Resources Department on staff training. 2019 was marked by change and the migration to a new e-learning platform. Compliance has continued its training and awareness-raising initiatives regarding the many changes to regulations in areas such as anti-money laundering and counter terrorist financing, tax evasion and information security. The Compliance Department coordinates first-level permanent controls of compliance risks. In addition, it sets up and implements second-level permanent controls to ensure that procedures are applied within the business lines and that compliance risks are managed, as part of a risk-based approach (see 3.2.1 Organization of Natixis’ internal control system) . To this end, the Compliance Department maps compliance risks and ensures that anomalies detected by the relevant business lines are resolved.

Organization of compliance 3.2.8.1 The Compliance Department oversees compliance risk prevention and mitigation. It also oversees IT Systems Security, personal data protection and business continuity. Its scope of action encompasses Natixis and its subsidiaries and branches in France and abroad, thanks to its functional structure. Responsibilities The Compliance Department advises and assists all Natixis employees on how to prevent compliance risks when performing their duties. It plays a key role in implementing the principles set out in the Natixis Code of Conduct (see 6.2.1 The Natixis Code of Conduct) , which have been adapted for compliance in the Compliance Manual.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019