45 management of CFM Indosuez Wealth Management at the Internal Control Committeemeeting on 1 March 2021. The Audit and Risk Committeemeetings were held on 11 March, 13 October and 6 December 2021, chaired by François Veverka and attendedby directors, theStatutory Auditors, the CFM Indosuez General Secretary, the Head of the General Inspect ion depar tment , and representatives of the Credit Risk, Permanent Control, Finance, Compliance and Fraud functions in turn. Board of Directors meetings were held on 12 March, 11 May, 14 October and 7 December 2021. On 12 March 2021, the Board of Directors approved the risk appetite matrix and the alignment of the tolerance threshold of the operational risk indicator with that set by CAIW. This has been increased from 2% to 2.5% of NBI for the year 2021. COVID-19 PANDEMIC - ORGANISATION OF THE BCP, THE MANAGEMENT AND COMMUNICATION BODY, CONTROL SYSTEM, OBSERVATIONS: Following on from 2020, CFM Indosuez's management adjusted its system and organisation in line with the changing health conditions through the "Extended Crisis Management Committee" created in 2020 as part of the BCP. Comprising the Executive Committee, the heads of the departments that report directly to it, as well as the headsofOrganisation, InformationTechnology, Information Systems Security, General Resources and Permanent Control, theywereheld regularlyduring the year according to the changes in health conditions and the measures appliedby theMonegasquegovernment. TheBCPremains in force for the first quarter of 2022and shiftwork through remoteworkingremainsthemainmeasuretopreservestaff and service continuity. At the same time, Executive Management made use of its communicationbodiesandtools, includingtheManagement Committees with department heads and Executive CommitteeWebchat with all employees. Throughout theyear, theobjectiveof theManagement and theEnlargedCrisisManagementCommitteewastopreserve thehealthof employeeswhile lookingafter the interestsof customers in compliance with the health regulations in force. To thisend, themanagement has resorted to remote working on a shift basis with aminimumpresence of 50% of employees throughout the year. As no process adaptations were necessary, the usual internal control system was maintained. However, in view of the BCP and the use of remote working, the Permanent Control Department has taken care to take into account the operationscarriedoutby remoteemployees intheselection of its control samples. This second BCP exercise was unanimously approved by the control functions and once again confirmed the robustnessof our toolsandour organisation. Furthermore, the resultsof thecheckscarriedout byPermanentControl didnothighlightanybreachesofproceduresordeteriorated results linked to remoteworking andnooperational losses were linked to the pandemic. CREDIT RISK: The level of provisioning for credit risk remains limited and well covered due to the nature of the investments, the type and rate of coverage of the guarantees which allow for rapid recovery through the possible use of collateral. As a result, the amount provisioned at 31/12/2021 is €6.4million compared to €8.6million at the end of 2020 and €9.2 million in 2019. Total non-performing and disputed exposures continued to decline at €10.4 million compared with €12.7 million in 2020 and €29.7 in 2019, representing less than 1% of loans recorded in the balance sheet, which went from €3.3 billion in 2020 to €3.7 billion at 31/12/2021. As a reminder, in 2020 the Principality of Monaco took exceptional emergency economic measures to support merchants, artisans and small businesses in Monaco, to help them face the unprecedented situation (the health and economic crisis linked to Covid-19). The NAP Committee (New Activities and New Products) meeting held on 04/05/2020 approved the principles for the use of funds guaranteed 100% by the Monegasque State for CFM Indosuez corporate customers. In 2021, CFM Indosuez continued to support the fabric of the local economy through two mechanisms: • ACovidmoratorium (suspension of interest and capital for up to 1 year). • Loans guaranteed by theMonegasque guarantee fund (rate capped at 0.75%). As of 31 December 2021, the stock of Monegasque guaranteed loans amounted to €6.7 million through 23 loans, including 11 Forbearance loans for €3.9million, and the moratorium concerned 4 loans for €0.369 million. Monthly reports are made by RPC to CACIB.
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