Universal registration document and annual financial report 2020

2020 Universal registration document and annual financial report - BNP PARIBAS 55

2CorPorate GovernanCe and internal Control

Report on Corporate governance

■ heard the Statutory Auditors comments and conclusions on the quarterly and annual financial statements, where applicable;

■ asked the Statutory Auditors the questions it considered necessary, without the presence of the Executive Management or the Chief Financial Officer;

■ reviewed the accounting certification mechanisms as part of the internal control procedures.

It reviewed the section of the management report concerning the internal control procedures relating to the preparation and processing of accounting and financial information in respect of 2019; it recommended approval by the Board of directors.

The Board:

■ was informed of all the work of the Financial Statements Committee and the findings of the Statutory Auditors at the end of each reporting period;

■ examined and approved the results of the fourth quarter of 2019, full-year 2019 and the first three quarters of 2020;

■ reviewed and approved draft press releases at each meeting held to discuss the financial statements;

■ acknowledged the report of the discussions held by the Financial Statements Committee with the Statutory Auditors and the Chief Financial Officer, without the presence of the Executive Management;

■ approved the section of the management report on the preparation and processing of accounting and financial information in respect of 2019.

Relations with the Statutory Auditors The Financial Statements Committee received a written certificate of independence from each of the Statutory Auditors.

It was informed of the amount of fees paid to the Statutory Auditors and reviewed the summary report on assignments not directly related to the statutory audit, without the presence of the Statutory Auditors. In accordance with the Internal Rules (§ 7.1.3), it authorised one assignment of this nature, which was submitted for its approval, and two assignments relating to non-prohibited services for which the prior approval of the Committee is required.

2.c Work performed by the Financial Statements Committee and the Internal Control, Risk and Compliance Committee in their joint meetings, and work approved by the Board of directors in 2020

10 3 100% MeetingsNumber of members

Attendance rate

The committees:

■ acknowledged the stress tests carried out by the Bank to measure its resistance to the impacts of the Covid-19 crisis;

■ reviewed the calculation methodology used by the Group to estimate the ex ante provisions for credit risk under IFRS 9;

■ acknowledged the Statutory Auditors audit plan for the financial year 2020;

■ discussed whether the prices of the products and services proposed to customers are compatible with the risk strategy (in accordance with the provisions of CRD 4);

■ reviewed the main ongoing legal disputes and proceedings for which provisions have been, or may be, made;

■ reviewed the economic assumptions used to prepare the budget;

■ examined the EBA s new definition of default which will apply from 1 January 2021 and its impacts for the Group;

■ monitored changes in the prudential capital requirement and have been informed on how the Supervisory Review and Evaluation Process (SREP) had been adapted due to the health crisis;

■ reviewed the ACPR s letter containing the Group s Global Systemically Important Bank score.

The Board:

■ was informed of all the work performed by the Financial Statements Committee and the Internal Control, Risk and Compliance Committee;

2.d Work performed by the Internal Control, Risk and Compliance Committee and work approved by the Board of directors in 2020

5 9 100% MeetingsNumber of members

Attendance rate

Since 19 May 2020, the Internal Control, Risks and Compliance Committee and the Financial Statements Committee have a joint member to support the work of the committees on the appropriateness of the risks and provisions recognised by the Bank.

Risks and liquidity The Internal Control, Risk and Compliance Committee:

■ reviewed the Risk Appetite Statement (RAS), the aggregate risk thresholds, taking into consideration changes in relation to liquidity risk, interest rate risk in the banking book and operational risk;

■ was advised of the Internal Liquidity Adequacy Assessment Process report and reviewed the tolerance threshold above which it may be deemed that the liquidity position complies with the Bank s risk tolerance;

■ reviewed the 2019 internal control report, including the report on operational risk, including IT, permanent control and business continuity as well as the control of outsourced activities;