Banken for en verden i endring The bank for a ... - BNP Paribas

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Banken for en verden i endring The bank for a ... - BNP Paribas

• report of the Chairman / internal control

The Charter lays down rules relating to the

organisation, lines of responsibility and remit

of the various players involved in Internal

Control, and establishes the principle of the

independence of the Periodic Control function

(General Inspection unit).

Scope of Internal Control

One of the fundamental principles of Internal

Control is that it must be exhaustive in scope:

it applies in the same degree to all types of risk

and to all entities in the BNP Paribas Group

(entities include core businesses, business lines,

territories and functions) without exception.

It also extends to any core activities that have

been outsourced.

Because implementing this principle requires a

precise overview of the allocation of responsibilities,

a dedicated software application is being

deployed toward that end.

ORGANISATION

ANd fuNdAmENTAL pRINCIpLES

Of INTERNAL CONTROL

Internal Control, as defined in the Internal Control

Charter of BNP Paribas, is based on four pillars:

a. Permanent and Periodic Controls:

• Permanent Controls consist of ongoing risk

identification and assessment, procedures,

controls, and a dedicated reporting and

monitoring system. Permanent Controls are

carried out both by operational staff and by

specialised functions either within or outside

the entities.

• Periodic Controls are based on “ex post”

reviews carried out by employees who are

not involved in Permanent Controls. They are

performed by the General Inspection unit.

b. 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 and between those

involved in Permanent Controls and Periodic

Controls.

c. Responsibility of operational staff: a large

part of the Permanent Control mechanism is

incorporated within the operational organisation

under the direct responsibility of the core businesses

and functions which should make sure

that they have the resources required for effective

control. Managers at all levels must ensure

effective control over the activities for which

they are responsible.

d. Exhaustiveness of Internal Control: see

above, under “Scope of Internal Control”.

Teams from the General Inspection unit verify

that these four pillars are complied with by carrying

out regular inspections.

170

CORPORATE GOvERNANCE

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