defence, is responsible for carrying out periodic controls. The Bank continues to adjust its internal control system in line with changes in its business, the regulatory environment and CA SA Group directives. 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 CA Indosuez Business Line. Control results for 2023 Some 407 controls (levels 1, 2.1 and 2.2) listed in the COPILOT control management tool currently cover the major risks and processes considered sensitive. They were completed on schedule and the results observed remain satisfactory for all quarters of the 2023 financial year. Information and decisions of the Executive Directors and the Board of Directors The various communications made to senior management include information on outsourced activities (see table on outsourced activities on page 40), the approval and monitoring of limits, the results of controls over the entire scope of internal control, information on significant incidents, anomalies detected by the system for monitoring and analysing the fight against money laundering and the financing of terrorism and any other significant element relating to permanent risk control, compliance and periodic control, for both internal and external tasks. The governing body was also provided with details of changes in outstanding loans, ratings and nonperforming loans. As well as the reports made by the Risk and Permanent Control department, the Compliance and Ethics function also submits reports to the General Management. Three Internal Control Committees met on 10 March, 15 June and 5 October 2023. An E-CCI on the results of the Q4 2022 inspection campaign and the highlights of Q1 2023 was held on 7 April 2023. The reports on Internal Control and the measurement and monitoring of risks and cheques for the 2022 financial year were presented to the Internal Control Committee on 10 March 2023, then to the Specialised Audit and Risk Committee on 21 March, and approved by the Board of Directors on 22 March without comment. All the steps required to publish the Internal Control Report and its appendices on the Onegate website with authentication of signature OVERVIEW OF RISK AND EXPOSURE MANAGEMENT PRINCIPLE FOR THE ORGANISATION OF THE INTERNAL CONTROL SYSTEM Management of the system At CFM Indosuez Wealth, 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, risk monitoring and management systems, an information and documentation system and a process for monitoring flows of cash and securities. The CACIB Chief Risk Officer (who reports to the ACPR) and the Indosuez Wealth 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, adapted locally, including level 2.1 and 2.2 controls applied by all Group entities, implemented by the Indosuez Wealth Group on its main control functions (Legal, Compliance, Finance, Security, Permanent Control, etc.) ; • a local system including level 2.1 and 2.2 controls carried out by all operational departments, thus completing the scope of the Indosuez Joint Business Control Plan. The results of level 2.2 and 2.1 controls are centralised and monitored using a group IT tool shared by all entities. Results that require improvement and that are rated red or orange are analysed in detail 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. For CFM Indosuez Wealth and its subsidiaries, CFM Indosuez Gestion and CFM Conseil 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 supplement this internal control system, the Internal Audit department, as the third line of Internal control CFM Indosuez Wealth Management 44
RkJQdWJsaXNoZXIy NzMxNTcx