2018 Registration document and annual fi nancial report - BNP PARIBAS324

5 RISKS AND CAPITAL ADEQUACY PILLAR 3

5

Risk management [Audited]

5.3 Risk management [Audited]

GOVERNANCE

The specialised Committees of the Board of directors (see chapter 2, Corporate Governance and internal control), which examine the risks taken and the risk policies on a Group scale, are:

■ the Internal Control, Risk Management and Compliance Committee (CCIRC);

■ the Joint Committee that combines the CCIRC and the Financial Statements Committee.

In line with the Group s Risk Appetite Statement, Executive Management gives the broad direction for the major guidelines based on three key dimensions risk, capital and liquidity through the following bodies which are subsets of the Group s Executive Committee:

■ Risk Forum: examines all risk topics considered as important and identifi es those requiring additional analyses or risk decisions by the appropriate committees;

■ Capital Committee: described under Capital management in section 5.2, validates the Group s objectives in terms of solvency

ratios and Total Loss-Absorbing Capacity (TLAC) requirements as well as the trajectory to achieve these targets, monitors the compliance with this trajectory and, when relevant, proposes corrective actions. As the Group s competent Executive Management authority for all issues related to the internal credit and operational model, the Capital Committee is informed of decisions made in the MARCo Committee (Model Approval and Review Committee);

■ Group ALM Committee (Group ALCo): responsible for the management of the liquidity risk, interest rate risk and structural foreign exchange risk over the whole Group.

Moreover, the Group Supervision and Control Committee (GSCC) brings together the Group s control functions at Executive Management level and takes a Group-wide approach to tackling all aspects of risk exposure.

The following fi gure shows the main governance bodies at Group level for risk management.

➤ FIGURE 5: OVERVIEW OF GROUP LEVEL GOVERNING BODIES COVERING RISK-RELATED TOPICS [Audited]

Specialised Board Committees

Coverage of Risk-related topics by the General Management

Compliance, Risk and Finance Committee (CRIF)

Ethics Committee

Joint Meeting of the CCIRC and the Financial Statements Committee

Internal Control, Risk Management and

Compliance Committee

Financial Statements Committee

Corporate Governance, Ethics, Nominations and CSR Committee

Compensation Committee

Group Executive Committee

Compliance Risk Legal Risk Operational, Market, and Credit Risk

Interest Rate and Liquidity Risk

Group Supervision and Control Committee (GSCC)

Acquisitions Committee

Comité de Crédit de Direction Générale (CCDG)(*)

Comité des Débiteurs de la Direction Générale (CDDG)(**)

Capital Markets Risk Committee (CMRC)

Country Envelope

Risk Policy Committee (RPC)

IT Filière General Management Committee

Capital Committee

Budgetary Committees

Group ALCORisk Forum

Consultative committee

(*) General Management Credit Committee.

(**) General Management Doubtful Committee.