Société Générale / Risk report 2021 - Pillar 3 2020

3 RISKMANAGEMENT ORGANISATION RISK MANAGEMENT ORGANISATION | SOCIETE GENERALE GROUP | PILLAR 3 - 2021 33 the Finance Committee (COFI) is responsible for setting out the p Group’s financial strategy and for managing scarce resources (capital, liquidity, balance sheet, tax capacity) in the context of the allocation and management of structural risks. The COFI, upon proposals from the Finance division and the Risk division, validates the structural risk oversight and management framework for the Group and its significant entities, and reviews changes in such risks (limits and consumption). It periodically assesses the consumption of scarce resources. It reviews the financial panorama, ILAAP and ICAAP documents, ongoing issues regarding to ALM, Liquidity, the Preventive Recovery Plan, and the Corporate Center budget and intra-group re-invoicing. Lastly, it addresses issues pertaining to the Group’s taxation (managed jointly by the Finance division and the General Secretary); the Compliance Committee (COMCO) meets quarterly to define the p Group's main guidelines and principles in terms of compliance inciedents; under the responsibility of the Compliance Department, it is chaired by the General Management; the Digital Transformation Committee (DTCO) , in line with the p Group strategy Committee’s decisions, initiates and monitors the transformations of the information system and the related operational model which require a decision by the General Management due to their transverse nature or by the scale of the envisaged transformation, a decision by the General Management; the Group Internal Control Coordination Committee (CCCIG) is p responsible for the overall architecture of the Group’s internal control system: for evaluating its efficiency, consistency and comprehensiveness of the system, for taking corrective actions and for monitoring their implementation; the Responsible Commitments Committee (CORESP) deals with p topics related to the Group’s commitments and normative framework in CSR (including CSR sectoral policies), culture and conduct, or other topics that have an impact on the Group’s liability and not already covered by an existing committee. Divisions in charge of risk monitoring The Group’s Corporate Divisions, which are independent from the core businesses, contribute to the management and internal control of risks. The Corporate Divisions provide the Group’s General Management with all the information needed to perform its role of managing Group strategy under the authority of the Chief Executive Officer. The Corporate Divisions report directly to General Management. The primary role of the Risk Division is to support the development p of the Group’s activities and profitability by defining the Group’s risk appetite (allocated between the Group’s different business lines) in collaboration with the Finance Division and the Business and Service Units, and establishing a risk management and monitoring system in its capacity as a second line of defence. In performing its work, the Risk Division reconciles independence from the businesses with a close working relationship with the Businesses Units, which are responsible in the first instance for the transactions they initiate. Accordingly, the Risk Division: provides hierarchical and functional supervision for the Group’s - Risk function, is jointly responsible, with the Finance Division, for setting the - Group’s risk appetite as recommended to General Management, identifies all Group risks, - implements a governance and monitoring system for these risks, - including cross-business risks, and regularly reports on their nature and extent to General Management, the Board of Directors and the banking supervisory authorities, contributes to the definition of risk policies, taking into account - the objectives of the businesses and the relevant risk issues, defines or validates the methods and procedures used to analyse, - measure, approve and monitor risks, implements a second-level control to ensure the correct - application of these methods and procedures, assesses and approves transactions and limits proposed by - business managers, defines or validates the architecture of the central risk - information system and ensures its suitability to business requirements. The Finance Division is organised according to three levels of p supervision, each reporting to a Chief Financial Officer: French Retail Banking, and International Retail Banking and - Financial Services, Global Banking and Investor Solutions, - cross-business functions, bringing together all the areas of - expertise that are key to the Finance Division. It also carries out extensive accounting and finance controls. As such: the Group Accounting Department is responsible for - coordinating the mechanism used to draw up the Group’s consolidated financial statements, the Experts on Metrics and Reporting Department is - responsible for producing the regulatory reports of the Group, the Mutualised Transactions Processing Department manages - the shared service centers of the Finance Division with the support of its Paris teams and the oversight of Finance teams in Bucharest and Bangalore, the Finance Control Department is responsible for the - second-level permanent control system over all the Finance Processes, the Asset and Liability Management Department is in charge of - the ALM function for the Group, of controlling the Group's liquidity and exchange rate risks, as well as the operational management of ALM for the Societe Generale Parent Company (SGPM). The other cross-business functions provide various tasks for the Finance Division, in particular with the Finance Division of the Group Service Units, Group Investor Relations and Financial Communication, Human Resources and the Corporate Secretary. The Finance Departments of the Business Units and Service p Units, which report hierarchically to the Group Finance Division, ensure that the financial statements are prepared correctly at the local level and control the quality of the information in the financial reports (accounting, management control, regulations, etc.); T he Group Compliance Division is responsible for defining and p ensuring the consistency of the system for preventing and controlling the risk of non-compliance, as well as for coordinating the system intended to prevent, detect, assess and control reputational risk in the entire Group;