2012 Registration document and annual financial report - BNP Paribas

RISKS AND CAPITAL ADEQUACYAnnual risk survey5The purpose of Pillar 3 – market discipline, is to complement theminimum capital requirements (Pillar 1) and the supervisory reviewprocess (Pillar 2) with a set of disclosures completing the usual financialdisclosures. It is designed to allow market participants to evaluate keyitems of information such as scope of application, capital, exposure todifferent types of risk, risk assessment procedures, and, consequently,capital adequacy with respect to the institution’s risk profile.This chapter presents the information relative to the BNP Paribas Group’srisks and in this respect meets:■ the obligations set forth in Title IX of the French Decree of 20 February2007 (1) on capital requirements for credit institutions and investmentfirms which applies to the consolidated BNP Paribas Group (seearticle 1);■ the accounting standards requirements relating to the natureand the extent of the risks. Pillar 3 information is not subject toan external audit and thus is not addressed for verification to theStatutory Auditors of the Group. However, some information requiredby accounting standards IFRS 7, IFRS 4 and IAS 1 is included in thischapter and covered by the opinion of the Statutory Auditors on theconsolidated financial statements. This information is identified bythe mention “[Audited]” and must be read as being part of the notesto the consolidated financial statements;■ the desire to meet the needs of investors and analysts expressed aspart of the initiative taken by the Financial Stability Board aimingto improve financial information published by international financialinstitutions (Enhanced Disclosure Task Force). BNP Paribas hasimplemented all the recommendations achievable as of 2012 and willmeet the rest in the coming years according to their relevance to theBank and the advance of its works. In this respect, sensitive exposuresthat were hitherto included in section 3.3 “Review of operations” arepresented in the notes of the chapter.5.1 Annual risk surveyKEY RISKS ARISING FROM THE GROUP’S BUSINESS5RISK-WEIGHTED ASSETS BY TYPE OF RISK AT 31 DECEMBER 2012➤ FIGURE 1: RISK-WEIGHTED ASSETS BY RISK TYPE AT 31 DECEMBER 2012 (*) 75% (73%)9% (9%)Operationalrisk5% (6%)Market risk4% (4%)Equity riskCredit risk3% (4%)Securitisation4% (4%)Counterparty riskTotal: EUR 552 billion at 31 December 2012(EUR 614 billion at 31 December 2011)(*) Numbers between brackets correspond to the breakdown as of 31 December 2011(1) Issued by the French Ministry of the Economy, Finance and Industry of 20 February 2007, modified by the Decrees of 19 October 2007, of 11 September 2008, of 29 October 2009,of 25 August 2010, of 13 December 2010 and of 23 November 2011.2012 Registration document and annual financial report - BNP PARIBAS 219