Société Générale / Risk report 2021 - Pillar 3 2020

10 OPERATIONAL RISK OPERATIONAL RISK MEASUREMENT | SOCIETE GENERALE GROUP | PILLAR 3 - 2021 193 Quantitative data The following charts break down operating losses by risk category for the 2016-2020 period. OPERATIONAL RISK LOSSES: BREAKDOWN BY SOCIETE GENERALE RISK EVENT TYPE – AMOUNTS OPERATIONAL RISK LOSSES: BREAKDOWN BY SOCIETE GENERALE RISK EVENT TYPE – NUMBER OF EVENTS Over the past five years, Societe Generale’s operational risks were concentrated on average on sixtypes, accounting for 97% of the Group’s total operating losses: fraud and other criminal activities represented 34% of the amount of p operating losses over the period. They are mainly composed of external frauds on financing files (falsified financial statements by the client, theft or misappropriation of collateral/guarantees, etc.), fraud on manual means of payment (cash, transfer and cheque) and supplier fraud on financed equipment; execution errors represented 23% of total operational losses, p thereby constituting the second leading cause of loss for the Group. The amount of losses in this category is trending upwards over the last two years with values above the average; two years following the settlement of the Group’s main disputes in 2018; litigation with authorities, the third largest category, represented p 16% of the Group’s operational losses over the period. The amount of losses in this category has fallen very significantly over the last pricing or risk assessment errors, including model risk, represent p 12% of the total amount of losses. The main cases concern the pricing and ALM models; commercial disputes represented 9% of total Group operating p losses. The trend is down for this category over the period considered; information systems failures represent 4% of the total amount of the p Group's operational losses. The trend is increasing for this category over the period considered. The other categories of Group operational risk (activities not authorised on the markets, system interruptions, loss of operating environment/capability) were still relatively insignificant, representing barely 3% of the Group’s losses on average over the 2016 to 2020 period.