CFM INDOSUEZ Wealth Management - 2020 Annual Report

36 The Audit and Risk Committeemeetings were held on 11 March, 7 October and 2 December 2020, chaired by François Veverka and attended by directors, the Statutory Auditors, the CFM Indosuez General Secretary, the Head of the General Inspection department, and representatives of the Credit Risk, Permanent Control, Finance, Compliance and Fraud functions in turn. The 2020 Board of Directors meetings were held on 12 March, 25 June (initially scheduled for 14 May, this meeting was held via videoconference and audioconference due to theCovid-19 crisis), 8October and 3 December. The risk appetite chart, which saw nomajor changes in 2020, was presented and validated in principle by the Audit andRisk CommitteeMeeting of 11 March and the Board of Directors meeting of 12 March. COVID-19 PANDEMIC - ORGANISATION OF THE BCP, THE MANAGEMENT AND COMMUNICATION BODY, CONTROL SYSTEM, OBSERVATIONS: The emergence of the Covid-19 pandemic at the start of 2020 led CFM Indosuez’s Executive Management to create a newhealth riskmonitoring body, the “Crisis Management Committee” comprisingmembers of the Executive Committee and the department heads reporting directly to it, as well as the heads of Organisation, IT, Information Systems Security, General Services and Permanent Control. At the same time, Executive Management made use of its communication bodies and tools, including the Management Committeeswith department heads and Executive Committee Webchat with all employees. These different channels were used throughout the year according to changes in public health conditions, whether in the context of the first Business Continuity Plan (BCP) during the strict lockdown in the first quarter, or the secondBCP, put in place on 28October, which provided for alternating team shifts with 50% of staff on site and 50% working remotely, or else during the intermediary period. The processes that were adapted in the first BCP, relating to customer provisions, risks, compliance and paymentmethods, were inventoried and reported by the Executive Committee in accordance with the decisions taken by theCrisisManagement Committee after i t val idated the processes requi r ing organisational adaptations linked to remoteworking. It should be noted that at the height of the lockdown, three-fourths of employees wereworking remotely. With the return of employees on site during the summer, activity continued in the various departments according to the usual rules. Given the unusual circumstances, the internal control systemwas supplemented by control plans dedicated to BCP periods, with the aim of ensuring the control of our risk exposure linked to the change in working methods of employees working remotely, and heightened risk of both internal and external fraud. These additional controls, established by local and business line control plans, aimed to strengthencontrolsof themost “sensitive” themes including the traceability of orders, compliance withCall Back procedures, Suitability, specificmonitoring of transactions on dormant accounts and addressees unknown, structured products and foreign exchange orders. The results obtained were communicated in detail to the members of the Executive Committee and to thePermanent Control business line. It should be noted that the local and business lineCopilot control campaigns were nevertheless fully carried out in a timely manner, with the exception of a few controls requiring slightly more time due to the need for on-site presence or other service constraints. Control functions unanimously noted the robustness of the Business Continuity Plan which, from the first day of the lockdown, allowed us to provide the tools and infrastructure necessary to remote working to all employees of the Bank. Moreover, the health measures deployed and the organisation of remote working implemented allowed us to ensure the absence of any transmission of Covid-19 through contact within CFM Indosuez. At the same time, the results of the Copilot controls and those dedicated to the Covid-19 business continuity plan did not uncover, based on the scopes tested, any aberrations in conduct or compliance with the standard processes of CFM Indosuez linked to remote working. Awareness training sessions were carried out by Management with Sales employees and the Markets Division throughout the year. This point was confirmed by the analysis of annual operational losses, since as to date, no operational loss or fraud directly linked to the Covid-19 health crisis or the BCP have been observed for the year. It should be noted that direct expenses linked to the Covid-19 crisis (orders of masks, hand sanitizer, cleaning services, etc.) recorded at 31/12/2020 amounted to €344,000. R E PORT OF THE BOARD OF D I R ECTOR S AT THE ORD I NARY GENE R AL ME E T I NG OF 1 1 MAY 2 0 2 1