532019 Universal registration document and annual financial report - BNP PARIBAS
2CorPorate GovernanCe and internal Control
2
Corporate governance report
Ad hoc work performed by the Financial Statements Committee in 2019
Examination of the financial statements and financial information The Financial Statements Committee reviewed the impact on the Group s consolidated financial statements of the first-time adoption of IFRS 16, which came into force on 1 January 2019.
The Board:
■ was informed of the accounting impacts of the first-time adoption of IFRS 16, replacing IAS 17, on Group equity.
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. It authorised five assignments falling within the remit of non-prohibited services for which the Committee s prior authorisation 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 2019
MeetingsNumber of members
Attendance rate
10 3 97%
The committees:
■ reviewed the Internal Capital Adequacy Assessment Process (ICAAP) report. They examined the Bank s assessment of its risks, and made sure that it had appropriate controls and the required capital to cover those risks;
■ examined the Statutory Auditors audit plan;
■ 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;
■ monitored the changes in prudential capital requirements and reviewed the results of the SREP, their impact on the solvency ratio and the recommendations made by the ECB;
■ were informed of the remedial actions taken by the Group in response to two follow-up letters from the ECB issued as part of (i) the mission focusing on the assessment of the Pillar 3 Disclosure of BNPP Group and (ii) of the mission relating to the Trading Book Assessment;
■ 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;
■ approved the Internal Capital Adequacy Assessment Process and its conclusions.
2.d Work performed by the Internal Control, Risk and Compliance Committee and work approved by the Board of directors in 2019
MeetingsNumber of members
Attendance rate
5 9 98%
Risks and liquidity The Internal Control, Risk Management 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 and approved the introduction of new indicators;
■ 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 2018 internal control report, including the report on operational risk, including IT and cybersecurity, permanent control and business continuity as well as the control of outsourced activities;
■ monitored the Group s cybersecurity programme, its deployment schedule and the related budget. It was informed of projects still to be implemented and reviewed the level of maturity of each of the Group s business lines and territories in relation to the objectives set;
■ reviewed the dashboard presented quarterly by the Head of RISK and reviewed trends in market, counterparty and credit risk as well as liquidity. It deliberated on the basis of information presented by RISK. The Head of RISK answered the committee s questions on the various categories of risks during a meeting;
■ was informed of any risk indicator thresholds or limits that had been exceeded and, where applicable, any action plans decided by Executive Management;
■ approved the renewal of risk limits for specific sectors and activities;
■ decided whether the Group s remuneration policy was compatible with its risk profile.
