Société Générale / Risk report 2021 - Pillar 3 2020

10 OPERATIONAL RISK OPERATIONAL RISK INSURANCE | SOCIETE GENERALE GROUP | PILLAR 3 - 2021 195 OPERATIONAL RISK INSURANCE 10.5 General policy Since 1993, Societe Generale has implemented a global policy of hedging Group operational risks through insurance. This consists in searching the market for the most extensive cover available for the risks incurred and enabling all entities to benefit from such cover wherever possible. Policies are taken out with leading insurers. Where required by local legislation, local policies are taken out, which are then reinsured by insurers that are part of the global program. In addition, special insurance policies may be taken out by entities that perform specific activities. A Group internal reinsurance company intervenes in several policies in order to pool high-frequency, low-level risks between entities. This approach contributes to the improvement of the Group’s knowledge and management of its risks. Description of main general risk coverage Buildings and their contents, including IT equipment, are insured at their replacement value. The guarantee covering acts of terrorism abroad has been renewed. Liability other than professional liability ( i.e. relating to operations, Chief Executive Officers and Directors, etc.) are covered. The amounts insured vary from country to country, according to operating requirements. Description of main risks arising from operations Insurance is only one of the measures used to offset the consequences of the risks inherent in the Group’s activity. It complements the Group’s risk management policy. THEFT/FRAUD These risks are included in the “Banker’s Blanket Bond” policy that insures all the Group’s financial activities around the world. Internal fraud (committed by an employee or by a third party acting with the aid of an employee) and external fraud (committed by a third party acting alone), with the intent to obtain illicit personal gain or to harm the Group, are covered. PROFESSIONAL LIABILITY The consequences of any legal on staff or managers in the Group’s professional activities are insured under a global policy. CYBER ATTACKS A cyber risk insurance policy has been taken out amid an environment not specific to the banking sector which is seeing a rapid development of new forms of crime mainly involving data theft or the compromise or destruction of computer systems.