LIQUIDITY AND FUNDING RISK Liquidity and interest rate risks were monitored and managed in particular by the Treasury Committees held on 23 February, 3 May, 11 September and 28 November 2024 and the ALM Committees held on 29 March, 18 June, 24 September and 17 December, in accordance with Group guidelines and as described in the annual internal control report and its first appendix. There are no major changes to be noted for the 2024 financial year in their monitoring methodology. In addition, the ratios and thresholds are respected. Details of liquidity and funding risk exposure are provided in Note 3.4 to the consolidated financial statements. OPERATIONAL RISKS Governance Indosuez Wealth Management Group has produced a group-wide operational risk map, consisting of a list of activities and processes performed by each entity, using a common structure. It applies to the internal control scope of CFM Indosuez Wealth Management and its subsidiaries. Following the roll-out of the Enablon tool in Q1 2024, the entire mapping process was transposed into the tool, with the department responsible for the risk being assigned to it and the existing mitigants (committees, whistleblowing, training, body of regulations, technological measures, strong processes, disciplinary measures, etc.) being filled in. In addition, the integration of risk mapping has enabled risks to be linked directly to controls. At 31/12/2024, each area in the operational risk map was reviewed and validated by its business line manager as part of the annual process of review and backtesting. To facilitate a more in-depth review and following the deployment of the Enablon tool, Permanent Control has set up training courses and workshops to support the various departments. The cross-divisional mapping of compliance, internal or external fraud and legal risks is also validated annually by Compliance and the Legal department. Finally, the operational risk mapping system was enhanced in 2021 by the transposition of this mapping dedicated to the risks of corruption and influence peddling, in accordance with the requirements of the French anti-corruption law known as "Sapin II". CFM Indosuez WM's 2024 corruption risk map was reviewed in a lighter version this year, following an in-depth review in 2023. It was presented to and approved by the Executive Committee on 16 December 2024. The mapping of subsidiaries was also reviewed and ratified according to the same principles. The action plan resulting from the mapping was also presented and is regularly monitored by the Internal Control Committee. The quarterly reports on operational losses were transferred to the CACIB RPC department using the group-wide application, Olimpia, and a summary by risk category was presented to the Internal Control Committee and the Board of Directors. In this context, any incident in excess of a threshold of €150k and/or provision in excess of a threshold of €300k has been reported to the Board of Directors and the Executive Committee, and has been entered individually into the Olimpia Group tool. Results and exposure In 2024, gross operating losses (excluding provisions) of €560k will remain under control, in line with the three previous years (€343k in 2023, €1,018k in 2022 and €426k in 2021), thanks to the strengthening of control systems and the introduction of new processes for employees (raising awareness of risk culture, particularly at Advisory level). In fact, no incident generating significant gross operating losses (> €150k) was recorded in 2024. On the other hand, the cost of RO including provisions will rise to €2,165k, compared with €928k in 2023, €3,533k in 2022 and €754k in 2021, due to the recognition of additional provisions totalling €2,595k in connection with existing disputes. Finally, the Business Continuity Plan and IT Security Plan were tested in 2024. The results were very satisfactory. In addition, the overall level of IT security analysed through the many tools and human controls remains satisfactory. Nevertheless, in the face of new threat scenarios, awareness-raising and projects to secure our information systems and applications remain areas for ongoing development. Annual Report 2024 47
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