CFM INDOSUEZ Wealth Management - 2019 annual report

30 CFM Indosuez Wealth Management of accounting and financial control based on fixed objectives, the preparation of the annual activity report, the approval of the annual budget and the setting of financial objectives for the year, including equity planning and liquidity risk tolerance. In addition, the Board is responsible for ensuring the adequacy of resources, governance and oversight and that standards are observed (compliance). It makes decisions on matters related to the Bank’s administration referred to it by members of the Executive Committee and other issues brought before it by the specialised committees. Among other things, it decides on changes to the Bank’s activities, structures and strategic or real estate investments, such as the creation, acquisition or disposal of subsidiaries and ownership interests, the opening or closing of branches and representative offices, the acquisition or disposal of new businesses and the sale or purchase of buildings. It also makes the necessary decisions regarding legal and regulatory provisions, specifically in the areas of corporate governance, human resources, risk management and internal control. The Board of Directors delegates some of its tasks to its specialised committees, to the extent allowed by laws and regulations. These committees meet several times a year, depending on the matters at hand and the opinions requested by the Board. Their members are appointed by the Board of Directors. They operate on the basis of files prepared by the General Secretary. They have limited decision-making powers and facilitate the Board’s work by providing their opinions. Audit Committee The Audit Committee is responsible for monitoring the financial reporting process and the audit of the annual financial statements. In particular, without any prejudice to the Board of Directors’ remit, it is responsible for the following: Monitoring, cash management, analysis of profit, foreign exchange activities, analysis of net banking income, monitoring and assessment of internal control, risk management and internal audit systems, monitoring of the work of the Statutory Auditors. Risk Committee The Risk Committee advises the Board of Directors on matters pertaining to the entity’s overall risk strategy and risk appetite. This includes current and future risks, exposures at risk, non-performing and disputed loans, loan categories, trends in outstanding exposures, market risks, the assessment of operational risks, cyber security risks, IT risks, etc. The Risk Committee assists the Board in assessing how Executive Management and the Chief Risk Officer implement the overall strategy. As a reminder, the Risk Committee has a purely advisory role. It monitors compliance matters, internal/ external fraud, KYC and the implementation of MiFID II. It reviews the work of the General Inspection department, monitoring assignments and the application of recommendations. This description is in no way exhaustive.