CFM INDOSUEZ Wealth Management - 2020 Annual Report

COR POR AT E GOV E RNANCE 30 4.3.2. EXPERTISE The Board of Directors is the administrative body in charge of senior management, high-level risk monitoring and the adequacy of the Bank's management control system. Accordingly, it deals with major issues relating to strategy, general policy, management and the oversight of activities and risks. The Board approves the resources, organisation and planning needed to implement the strategy and general policy, based on proposals made by the Executive Committee, as appropriate. It is also responsible for finance,methods 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 ExecutiveCommittee 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 newbusinesses and the sale or purchase of buildings. It alsomakes 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, riskmanagement 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 howExecutiveManagement and theChief Risk Officer implement the overall strategy. As a reminder, the Risk Committee has a purely advisory role. Itmonitors compliancematters, internal/external fraud, KYC and the implementation of MiFID II. It reviews the work of the General Inspection department, monitoring assignments and theapplicationof recommendations. This description is in no way exhaustive. Consolidated key figures under IFRS standards Consolidated key figures (in €million) 31/12/2020 31/12/2019 Change in % Shareholders’ equity 372 350 6.3% Gross operating income 27 32 -17.5% Total assets 5,981 6,070 -1.5% Net income after income tax 22 49 -55.7% NBI 118 127 -7.6%