ourexpertise - Crédit Agricole CIB

2CORPORATE GOVERNANCE• INTERNAL CONTROL AND RISK MANAGEMENTPROCEDURESDefinition of the internal controlsystemWithin the Credit Agricole Group, the internal control system isdefi ned as all procedures aimed at controlling activities and risksof all kinds and enabling transactions to be carried out properly,securely, and effi ciently, in accordance with texts referred to below.Crédit Agricole CIB, which is a wholly owned subsidiary ofthe Credit Agricole Group, complies with the rules laid down inFrench and international regulations and with the rules and regulationsset by its parent company.The internal control system and procedures can therefore be classified by their purpose:• application of instructions and guidance given by the ExecutiveManagement,• a fi nancial performance objective, to ensure effective and properuse of Group assets and resources and protection against therisk of loss,• access to exhaustive, accurate and timely information for decision-makingand risk management purposes,• a compliance objective, in respect of internal and external rules,• prevention and detection of fraud and errors,• an objective to compile accurate and exhaustive accountingrecords and prepare reliable and timely accounts and fi nancialstatements.However, this system and these procedures have limits, relating inparticular to technical problems and staff shortcomings.Under the systems implemented within this standardised framework,certain resources, tools and reporting documents aremade available to the Board, to Executive Management and toother managers so that they can assess the quality of the internalcontrol systems and their adequacy.Reference documents relating to internal controlLaws and regulationsThe internal control procedures implemented by Crédit AgricoleCIB comply with the laws and regulations governing French creditinstitutions and investment companies, and namely with:• the French Monetary and Financial Code,• amended 97-02 regulation, relating to the internal control of creditinstitutions and investment companies,• all texts relating to the conduct of banking and fi nancial activities(collated by the Banque de France and the CRBF),• the Autorité des Marchés Financiers’ General Regulation.The Company’s internal control system also takes into accountthe following international reference documents:• the Basel Committee’s recommendations on banking control,• local applicable laws and regulations in the countries in whichthe Group operates.Main internal referencedocumentsThe main internal reference documents are:• Procedural Memo 2006-11 on « the organisation of internalcontrol within the Crédit Agricole S.A. Group«,• Procedural Memos dealing with the Crédit Agricole S.A. Group’sRisk Management and Permanent Controls,• documents circulated by Crédit Agricole S.A., relating to subjectsincluding accounting (Crédit Agricole chart of accounts),fi nancial management, and risk management and permanentcontrols,• the Crédit Agricole Group’s Code of Conduct,• Directive 3.3.1 on the organisation of internal control in the CréditAgricole CIB Group,• Directive 2.4.3.2 on the organisation of permanent control,• Directive 3.6.2.2 on the organisation of accounting and fi nancialpermanent control in Crédit Agricole CIB,• the Crédit Agricole CIB compliance manuals,• a set of procedures (intranet database of governance texts,maintained by the Company’s offi ce of the Corporate Secretary)relating in particular to compliance and risk management andpermanent controls,• procedures implemented by the various departments of CréditAgricole CIB, its subsidiaries and its branches,• the procedures of the different divisions of Crédit Agricole CIB,of its subsidiaries and branches.46SHELF-REGISTRATION DOCUMENT CRÉDIT AGRICOLE CIB 2010