2012 Registration document and annual financial report - BNP Paribas

More documents

Recommendations

Info

5RISKSAND CAPITAL ADEQUACYRisk managementRole of the Chief Risk OfficerThe Group Chief Risk Officer directly reports to the Chief Executive Officerand sits on the Executive Committee of BNP Paribas. He has line authorityover all GRM employees. He can veto the risk – related decisions made bythe Group, and has no connection, in terms of authority, with the Heads ofCore businesses, Business lines and territories . Such a positioning servesthe following purposes:■ ensuring the objectivity of risk control, by removing any involvementin commercial interests;■ making sure senior management is warned of any deterioration in riskand is rapidly provided with objective and comprehensive informationon the status of risks;■ enabling the uniform dissemination, throughout the Bank, of high riskmanagement standards and the implementation of best practices;■ ensuring the quality of risk assessment methods and procedures bycalling on professional risk managers in charge of evaluating andenhancing these methods and procedures in light of the best practicesimplemented by international competitors.➤ FIGURE 2: RISK COMMITTEESBOARD LevelCCIRCForum with a focus on Group wide risk taking levels and risk policiesGroup Executive CommitteeInformation on the analysis and decisions taken in the Risk, Capital, Liquidity and ALM Committees a appropriateEXECUTIVE MANAGEMENTLevelCapital CommitteeValidates and reviews the stepstowards target solvency ratioRisk CommitteeDiscusses whatever risk issuesseen as criticalLiquidity & ALM CommitteesIn charge of the Group medium termfunding program of the Group and of theclose monitoring of the liquidity position5MAIN RISK COMMITTEESExecutive Management and Poles LevelComité de Crédit Direction Générale ( * )Decides on credit risk and conducts annual reviews forclients above certain thresholds at the individual levelCapital Markets Risk CommitteeReviews the main market and counterparty exposures andtakes decision upon Trading limits, Market and Cty Riskpolicies and methodologiesGroup Doubtful and WatchList CommitteesReviews existing limits and exposures on all performingCountry Envelope CommitteesSet limits for a given country in view of market conditionsTransaction and New Activity CommitteesThe TAC process is called for the validation of exceptionaltransactions and the NAC for new products/activitiesRisk Policy Committee (RPC)expert risk and business representatives(*) General Management Credit Committee.2382012 Registration document and annual financial report - BNP PARIBAS
RISKS AND CAPITAL ADEQUACYRisk management5RISK CULTUREONE OF THE GROUP’S CORE FOUNDINGPRINCIPLESThe BNP Paribas Group has a strong risk culture.Front-line responsibility for managing risks lies with the divisions,business lines and functions that propose the underlying transactions.They are expected to develop a sense of risk among their employees andto be fully aware of and understand both current and potential futuretrends in their risks.Executive Management has chosen to include the risk culture in two ofits key corporate culture documents:■ Responsibility CharterIn 2012, Executive Management drew up a formal ResponsibilityCharter based on four strong commitments, inspired by the Group’score values, management principles and code of conduct. One of thefour commitments is “Being prepared to take risks, while ensuring closerisk control”.Financing the economy, supporting projects, helping clients to managetheir currency or interest rate exposure – all this means accepting adegree of risk. One of BNP Paribas’ great strengths is precisely thisexpertise in managing risk.The Group believes that tight risk control is its clear responsibility, notonly towards its clients but also towards the financial system as a whole.The Bank’s decisions on the commitments it makes are reached after arigorous and concerted process, based on a strong shared risk culturewhich is present across all levels of the Group. This is true both forcredit risk arising from lending activities, where loans are granted onlyafter in-depth analysis of the borrower’s position and the project to befinanced, and for market risks arising from transactions with clients,which are assessed on a daily basis, tested against stress scenarios andgoverned by a system of limits.As a highly diversified Group, both in terms of geography and businessactivity, BNP Paribas is able to balance risks and their consequences assoon as they materialise. The Group is organised and managed in such away that any difficulties arising in one business area will not jeopardisethe Bank’s other business activities.■ Management PrinciplesOne of the Group’s four key management principles is «Risk-AwareEntrepreneurship», which highlights the importance of the risk culture:Risk-aware entrepreneurship means:■■being fully accountable,acting interdependently and cooperatively with other entities toserve the global interest of the Group and its clients,■■being constantly aware of the risks involved in our area ofresponsibility,and empowering our people to do the same.SPREADING THE RISK CULTUREStrict risk management is an integral part of the Bank’s makeup. A cultureof risk management and control has always been one of its top priorities.The Group is striving to spread this culture yet further given its stronggrowth over the past few years and the current climate of crisis. InMay 2010, BNP Paribas launched the Risk Academy, a cross-functionalGroup initiative, to help spread and promote its risk management culture.The Risk Academy is an open, group-wide venture, involving all businesslines and functions and sponsored by the Bank’s Executive Committee.Designed for the benefit of all staff and organised around a progressive,participative framework, its main aims are:■ help strengthen and spread the risk culture within the Group;■ promote training and professional development in the area of riskmanagement;■ run the Bank’s risk management communities.The Risk Academy therefore offers the following products and servicesunder a single umbrella:■ C ore Risk Practices, the basic principles forming the underlying themeof the Risk Academy, advocating sound risk management practices;■ e-learning r isk a wareness m odule, providing an introduction to thevarious risks managed by the Bank;■ risk t raining c atalogue for employees involved in risk-related activities;■ online l ibrary of documents to help share knowledge about riskmanagement;■ interactive presentations by BNP Paribas risk's experts, implementedin main sites of the Group.Lastly, the risk culture is also spread throughout the Group by linkingcompensation to performance and risk (see chapter 7, section entitled“A competitive compensation policy in line with international rules”).52012 Registration document and annual financial report - BNP PARIBAS 239
Page 1 and 2:
2012REGISTRATION DOCUMENTAND ANNUAL
Page 3 and 4:
2012 Registration documentand annua
Page 5:
1GROUP PRESENTATION1.1 Group presen
Page 9 and 10:
GROUP PRESENTATIONPresentation of a
Page 11 and 12:
Page 13 and 14:
Page 15:
Page 18 and 19:
1GROUPPRESENTATIONBNP Paribas and i
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
1GROUPPRESENTATION1282012 Registrat
Page 32 and 33:
2CORPORATEGOVERNANCEBoard of Direct
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
2CORPORATEGOVERNANCEReport of the C
Page 50 and 51:
Page 52 and 53:
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
2CORPORATEGOVERNANCEExecutive Commi
Page 78 and 79:
32012REVIEW OF OPERATIONSBNP Pariba
Page 80 and 81:
32012REVIEW OF OPERATIONSCore busin
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
32012REVIEW OF OPERATIONSBalance sh
Page 94 and 95:
32012REVIEW OF OPERATIONSBalance sh
Page 96 and 97:
32012REVIEW OF OPERATIONSProfit and
Page 98 and 99:
32012REVIEW OF OPERATIONSProfit and
Page 100 and 101:
32012REVIEW OF OPERATIONSOutlook3.6
Page 102 and 103:
32012REVIEW OF OPERATIONSLiquidity
Page 104 and 105:
4CONSOLIDATEDFINANCIAL STATEMENTS -
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191: 4CONSOLIDATEDFINANCIAL STATEMENTS -
Page 220 and 221: 5RISKSAND CAPITAL ADEQUACY5.6 Count
Page 222 and 223: 5RISKSAND CAPITAL ADEQUACYAnnual ri
Page 230 and 231: 5RISKSAND CAPITAL ADEQUACYCapital m
Page 242 and 243: 5RISKSAND CAPITAL ADEQUACYRisk mana
Page 248 and 249: 5RISKSAND CAPITAL ADEQUACYCredit ri
Page 272 and 273: 5RISKSAND CAPITAL ADEQUACYSecuritis
Page 284 and 285: 5RISKSAND CAPITAL ADEQUACYCounterpa
Page 286 and 287: 5RISKSAND CAPITAL ADEQUACYCounterpa
Page 288 and 289: 5RISKSAND CAPITAL ADEQUACYMarket ri
Page 290 and 291:
5RISKSAND CAPITAL ADEQUACYMarket ri
Page 292 and 293:
Page 294 and 295:
Page 296 and 297:
Page 298 and 299:
Page 300 and 301:
Page 302 and 303:
5RISKSAND CAPITAL ADEQUACYSovereign
Page 304 and 305:
5RISKSAND CAPITAL ADEQUACYSovereign
Page 306 and 307:
5RISKSAND CAPITAL ADEQUACYLiquidity
Page 308 and 309:
Page 310 and 311:
Page 312 and 313:
5RISKSAND CAPITAL ADEQUACYOperation
Page 314 and 315:
Page 316 and 317:
Page 318 and 319:
5RISKSAND CAPITAL ADEQUACYComplianc
Page 320 and 321:
5RISKSAND CAPITAL ADEQUACYInsurance
Page 322 and 323:
5RISKSAND CAPITAL ADEQUACYInsurance
Page 324 and 325:
5RISKSAND CAPITAL ADEQUACYAppendice
Page 326 and 327:
5RISKSAND CAPITAL ADEQUACYAppendix
Page 328 and 329:
Page 330 and 331:
Page 332 and 333:
Page 334 and 335:
Page 336 and 337:
6INFORMATIONON THE PARENT COMPANY F
Page 338 and 339:
Page 340 and 341:
Page 342 and 343:
Page 344 and 345:
Page 346 and 347:
Page 348 and 349:
Page 350 and 351:
Page 352 and 353:
Page 354 and 355:
Page 356 and 357:
Page 358 and 359:
Page 360 and 361:
Page 362 and 363:
Page 364 and 365:
Page 366 and 367:
Page 368 and 369:
Page 370 and 371:
Page 372 and 373:
Page 374 and 375:
Page 376 and 377:
Page 378 and 379:
7ARESPONSIBLE BANK: INFORMATION ON
Page 380 and 381:
Page 382 and 383:
Page 384 and 385:
Page 386 and 387:
Page 388 and 389:
Page 390 and 391:
Page 392 and 393:
Page 394 and 395:
Page 396 and 397:
Page 398 and 399:
Page 400 and 401:
Page 402 and 403:
Page 404 and 405:
Page 406 and 407:
Page 408 and 409:
Page 410 and 411:
Page 412 and 413:
Page 414 and 415:
Page 416 and 417:
Page 418 and 419:
Page 420 and 421:
Page 422 and 423:
Page 424 and 425:
Page 426 and 427:
Page 428 and 429:
8GENERALINFORMATIONDocuments on dis
Page 430 and 431:
8GENERALINFORMATIONFounding documen
Page 432 and 433:
Page 434 and 435:
Page 436 and 437:
8GENERALINFORMATIONStatutory Audito
Page 438 and 439:
8GENERALINFORMATIONStatutory Audito
Page 440 and 441:
9STATUTORYAUDITORSStatutory Auditor
Page 442 and 443:
10PERSON RESPONSIBLE FOR THE REGIST
Page 444 and 445:
11TABLE OF CONCORDANCEHeadings as l
Page 448:
HEAD OFFICE16, boulevard des Italie
show all

2012 Registration document and annual financial report - BNP Paribas

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?