RepoRt on - BNP Paribas

internal
control,
risk management
and
compliance
committee
in 2009, the membership of the internal
control, risk management and
compliance committee remained unchanged
from the previous year and included
françois grappotte (chairman),
jean-marie gianno and jean-françois
lepetit, i.e., two-thirds of its members
were independent directors in accordance
with the criteria of the afePmedef
corporate governance code.
most of its members have, based on their
training or experience, extensive expertise
in the field of finance or accountancy.
no members of the bank’s executive
management sit on the committee.
in 2009, the committee met four times
and the rate of attendance was 100%.
it also met once with the financial
statements committee.
documentation on agenda items —
presented in standardised form — was
previously addressed to the committee
members.
market risk, credit risk
and liquidity risk
— the committee duly reviewed, based
on the information presented by group
risk management, all of the market,
credit and counterparty risks. in particular,
it analysed the group’s exposure
in the sectors, business lines and
geographic areas most affected by
the crisis. it was informed, as was the
financial statements committee, of
the group’s sensitive exposures as per
the recommendations of the financial
stability board. the committee was informed
of the conclusions of the risk
Policy committees held by executive
management. it examined the exposure
of bnP Paribas fortis, in particular
as concerns structured credit
portfolios. the Head of group risk
management and his deputies specialised
in different risk categories were
interviewed at a committee meeting
and answered its questions in their respective
areas of responsibility.
— the committee was regularly informed
of value-at-risk (var) trends
as well as of the results of back testing.
it was briefed on the changes
made to secure the stress testing
methodology, specifically by applying
strong shocks to the positions.
— it was updated on and discussed, at
each of its meetings, trends in liquidity
markets and on the situation of
bnP Paribas. it was briefed on the policy
guidelines adopted by executive
management to adapt the organisation,
risk tolerance and internal management
model of liquidity to the
new environment. the committee
was informed of the outcome of the
stress testing carried out at the request
of the commission bancaire.
— the committee interviewed, without
the chairman or the chief executive
officer being present, the Head
of group risk management and
the Head of assets and liabilities
management.
internal Control,
Compliance, relations
with regulatory
authorities
— the committee was provided with the
draft annual reports on compliance
and permanent operational control
for 2008 as well as the draft periodic
control report prepared by
the general inspection unit for 2008.
it discussed the measures taken by
executive management to prevent
fraud and bolster the group’s compliance
system. it was briefed on the
main risk areas identified and on the
measures decided to monitor the
implementation of the recommendations
of the general inspection
unit. it reviewed the permanent operational
control system introduced in
the fields of operation and functions
of the group and the progress made
on their control plans. it also reviewed
114 <strong>RepoRt</strong> on CoRpoRate SoCial and enviRonmental ReSponSibility
a summary of salient events in 2008
and the action plan for 2009 of the
business continuity plan.
— the committee received several
briefings on the progress made on
projects launched at the start of 2008
by executive management to ensure
the control and security of transactions
and of information systems in
market transactions. it was informed
of the findings of the audit assignments
of the general inspection unit
at 30 june 2009 and analysed the
main observations made by it during
its assignments in the group’s fields of
operation or during its special-topic
assignments. it was informed of the
terms of references for 2010.
— it was updated on and discussed the
group’s presence in the countries featured
on the oecd list of 2 april 2009.
— the committee examined the risk
control and monitoring systems and
procedures. it examined the new provisions
of crbf regulation 97-02 and
submitted changes to the organisation
of its work it considered to be necessary
for approval by the board.
— it examined the correspondence
exchanged between executive
management and the commission
bancaire and reported on this to the
board.
— without the chairman or the chief
executive officer being present, the
committee interviewed the Head of
Permanent control and compliance,
and the Head of the general
inspection unit, who is in charge of
periodic controls.
— it reviewed the section of the
chairman’s draft report on internal
control and recommended its approval
by the board of directors.