44 SEPARATE FINANCIAL STATEMENTS OF CFM INDOSUEZ CONSEIL EN INVESTISSEMENT The net result of CFM Conseil en Investissement amounted to €0.1 million in 2021, an increase of €0.2 million on the 2020 result. The level of revenue increased by +€0.2 million compared to the 2020 Actual, due to a recovery in commercial activity. The level of expenses is in line with the previous year. As a reminder, in 2020, CFM IWM granted its subsidiary a commercial gesture linked to the difficulties encountered during the crisis with a 50% discount on the amount of the service agreement linking the two entities. The sole shareholder of CFM Indosuez Conseil en investissement SASUwill propose to allocate the positive result of the year to retained earnings. INTERNAL CONTROL PRESENTATION OF RISK EXPOSURE AND RISK MANAGEMENT Internal control system: The Bank adjusts its internal control system to changes in its activity and regulations. The implementation of a formal, exhaustive control system meeting the latest regulatory requirements and Group rules is the main objective of the Permanent Control department in close collaboration with the Business Line. At CFM IndosuezWealthManagement, the internal control system is applied in accordance with the Order of 3 November 2014, and the Order of 25 February 2021 amending it, on the internal control of companies active in banking, payment services and investment services and subject to ACPR supervision. It includes a process for controlling transactions and internal procedures, a structure for accounting and processing information, systems for measuring risks and results, riskmonitoring and management systems, an information and documentation systemandaprocess formonitoring flows of cash and securities. For CFM Indosuez Wealth Management and its subsidiaries, CFM Indosuez Gestion and CFMConseil en Investissement, the risk management function is organised locally within the Risk and Permanent Control department, which is responsible for the oversight, coordination and supervision of the risk and permanent control system (credit risk, market risk and operational risk). To round out this system, internal control is also carried out by Periodic Control and Compliance, which, for the past financial year, includes the activities of onboarding, KYC reviews, financial security, transaction monitoring and approval, ethics andmonitoring of fraud and corruption risks. The CACIB Chief Risk Officer (who reports to the ACPR) and the IndosuezWealthManagement Risk &Permanent Control (RPC) department delegate their authority to the Head of the Risk and Permanent Control department to oversee the risk control and supervision system, based on: • A central system including level 2.1 and 2.2. Controls, which are applied by all Group entities, implemented by Indosuez Wealth Management via its main control functions (Legal, Compliance, Finance, Security, Permanent Control, etc.). • A local systemof controls implemented by all operating departments (level 1 and 2.1) and level 2.1 and 2.2 controls performed by the control functions, to complete the scope of the Indosuez Business Line Common Control Plan. Most of the results of the controls are centralised and monitored via the IT solution Copilot, which is used by all Group entities. Results that require improvement and that are rated red or orange are analysed in detail and then rated by Permanent Control. These improveable indicators are presented to the Internal Control Committee and the Specialised Audit and Risk Committee and, if necessary, action plans are implemented. It should be noted that CFM Indosuez is currently planning to switch to Enablon, an integrated risk management solution, by Q1 2023. The results observed for the year 2021 remain satisfactory for all quarters and do not show any major deterioration in risk, despite the Covid-19 pandemic and the resulting use of remote working. INFORMATION PROVIDED TO AND DECISIONS MADE BY THE EXECUTIVE DIRECTORS, THE INTERNAL CONTROL COMMITTEE AND THE BOARD OF DIRECTORS DURING 2021: Information provided to senior management includes details of outsourced activities, the approval and monitoring of credit risk limits, the results of controls across the entire internal control scheme, significant incidents, anomalies detected by the anti-money launderingandcounter-terrorist financingmonitoringand analysis system, and any other significant events relating to permanent risk control, compliance and periodic control, covering both internal and external activities. Thegoverningbody isalsoprovidedwithdetailsof changes in outstanding loans, ratings and non-performing loans. As well as the reports made by the Risk and Permanent Control department, theCompliance andEthics function also submits reports to the executive bodies. Internal Control Committee meetingss were held on 9 March, 15 June and 16 October 2021 and anE-CCI was held on 23 December 2021 to present the results of the Q3 2021 control campaign to management. The half-yearly Internal Control Report was presented to the CFM Indosuez Wealth Management Board of Directors on 14 October 2021 and the 2021 Internal Control Report and its notes were presented and approved by the
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