RepoRt on - BNP Paribas

— it discussed the main stakes identified
for the different categories of risk;
— it was regularly updated on valueat-risk
(var) trends as well as on the
results of the risk measurements and
crisis situation simulation methods;
— it was informed of the breakdown of
the bank’s commitments by industry,
line of business and geographic
area, as well as of the concentration
of individual major risks. it was regularly
briefed on the bank’s sensitive
exposure as per the presentation
recommendations of the financial
stability board (fsb). it discussed the
group’s risk in the businesses, subsidiaries
and countries most affected
by the crisis. it carried out the first
reviews of the investment portfolio
and market and credit operations of
bnP Paribas fortis;
— throughout the course of the year,
the board was regularly informed of
the situation on liquidity markets and
kept abreast of the measures taken
by bnP Paribas to bolster its financing
security. it was briefed on the conditions
under which medium — and
long-term financing programs were
carried out;
— the board adapted the organisation
of its work to the new measures on
the assessment and control of policies,
measures and procedures introduced
by the bank to comply with
crbf regulation no. 97-02 relating to
internal control in banks and investment
firms. it set the identification
criteria and threshold for the reporting
of significant incidents revealed
by internal control procedures. it was
informed of the measures taken by
executive management to verify
that risk policies are being properly
applied and appropriate measures
taken to remedy any possible
shortcomings;
— the board was briefed on the internal
control function activity as well as
the resources placed at its disposal.
it was provided with draft reports for
the year ended 31 december 2008
on measuring and monitoring of risks,
compliance, permanent controls and
periodic controls. it was informed
of the progress made on measures
taken by executive management
designed to ensure the control and
security of market transactions;
— the board heard the chairman of the
internal control, risk management
and compliance committee on the
deliverables of the Periodic control
function reported by the general
inspection unit and on the followup
to recommendations previously
issued as well as on the Permanent
control reporting;
— the board was informed of the joint
work of the financial statements
committee and of the internal
control, risk management and
compliance committee on the process
for the valuation of financial
products and control system;
— the board heard the report, presented
by the chairman of the internal
control, risk management and
compliance committee, of the interviews
conducted by it without
the chairman or the chief executive
officer being present, of the Head
of the general inspection unit, who
is in charge of Periodic control, of
the Head of Permanent control of
compliance, of asset and liabilities
management and the Head of group
risk management, whose remit covers
the group’s global risk policy;
— the board was periodically informed
of the exchange of correspondence
with the commission bancaire
and of observations made by the
internal control, risk management
and compliance committee with
respect to each such exchange. it
heard briefings on the relations with
regulators abroad, as reported by
executive management.
(1) The firms of deloitte et Associés, Mazars and PricewaterhouseCoopers Audit were appointed by the Annual General Meeting
for the period 2006-2011, based on a proposal by the Board of directors.
105 <strong>RepoRt</strong> on CoRpoRate SoCial and enviRonmental ReSponSibility
budget,
financial
statements
and results,
financial
management
and communications
budget
as is customary, at its last meeting of the
year, the board reviewed and approved
the draft budget for 2010 presented by
executive management for the group
as a whole as well as its core businesses
and major business lines.
financial statements
and results
— the results and financial statements
of the group and of bnP Paribas sa
for the fourth quarter of 2008, the first
three quarters of 2009, for the first half
and first nine months of 2009, presented
by executive management,
were reviewed and approved as
required by the board. its work covered
the entire consolidated group
as well as each of its fields of activity
and core businesses. in view of the
climate of great uncertainty prevailing
on the stock exchange market
in early 2009, the board decided to
publish, in january 2009, the group’s
forecasted results at 31 december
2008. the board was informed of the
findings of the financial statements
committee and the group’s three
statutory auditors (1) — who are entitled
to attend board meetings held
to review the results and financial
statements — concerning the results
for the period.
— based on the report submitted
jointly by the statutory auditors and
executive management, it reviewed
the key choices made concerning
the application of accounting standards.
the board was informed of the
findings of the work of the financial
statements committee at a meeting
specifically dedicated to the measurement
of financial instruments.