RepoRt on - BNP Paribas

fundamental principles
of internal control
internal control in bnP Paribas is based
on the following key principles:
— responsibility of operational staff:
the permanent control mechanism
must be incorporated within the operational
organisation of the entities.
operational managers must ensure
effective control over the activities
for which they are responsible, and
all employees are under the duty to
blow the whistle on any problems or
failings of which they are aware;
— exhaustiveness of internal control
(see above, under “scope of internal
control”);
— separation of tasks:
this applies to
the various phases of a transaction,
from initiation and execution, to recording,
settlement and control. the
separation of tasks also exists between
independent functions carrying
out independent controls and
between Permanent control and
Periodic control;
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internal Control,
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— proportionality of risks:
the scope
and number of controls must be proportional
to the risk level covered.
these controls may consist of one or
more controls carried out by operational
managers and, if necessary,
one or more Permanent control
managers;
— internal control traceability:
this relies
on written procedures and audit
trails. controls, results, exploitation
and information reported by entities to
higher group corporate governance
levels must be traceable.
Periodic control teams (general
inspection unit) verify that these principles
are complied with by carrying out
regular inspections.
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119 <strong>RepoRt</strong> on CoRpoRate SoCial and enviRonmental ReSponSibility
organisation
of internal control
internal control at bnP Paribas consists
of Permanent and Periodic control.
while they are complementary, they
are distinct and independent of one
another:
— Permanent control is an overall process
for the ongoing implementation
of risk management and monitoring
of strategic actions. it is carried out by
operational staff, and their line managers,
and by Permanent control
functions either within or independent
of these operational entities;
— Periodic control is an overall process
for “ex post” verification of the operation
of the bank, based on surveys
that are conducted by the general
inspection unit, which performs these
functions on an independent basis.
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