Société Générale / Risk report 2021 - Pillar 3 2020

4 INTERNAL CONTROL FRAMEWORK CONTROL OF THE PRODUCTION AND PUBLICATION OF FINANCIAL MANAGEMENT INFORMATION | SOCIETE GENERALE GROUP | PILLAR 3 - 2021 41 The General Inspection also supervises the roll-out of data-analysis initiatives within the scope of Inspection and Audit activities. This mission is ensured via a dedicated data-lab (INS/DAT), under the responsibility of an Inspection Managing Director (inspecteur principal) . The General Inspection also supervises and coordinates the Service Unit’s relationship with regulators. Department Heads based in branches or affiliates overseas are reporting to the local entity’s Head. However, for the delivery of their internal audit role, they are placed under the hierarchical supervision of the Internal Audit Head in charge of their region or entity. IGAD has six distinct Audit Departments aligned with the Group organisation. Audit Departments placed under the supervision of a Head of internal Audit, each have the responsibility for a scope of activity. A matrix organisation allows coverage of the main cross-business issues at the Group level. In France, the internal Audit teams are hierarchically linked to the Inspection unit. Audit Inspection and Audit teams work together on an annual risk assessment to define the Inspection and Audit plans for the upcoming year. IGAD teams regularly work together on joint assignments. They issue recommendations to correct issues identified in risk management and generally improve operations and risk management. IGAD teams are subsequently in charge of monitoring the effective implementation of these recommendations. CONTROL OF THE PRODUCTION AND 4.2 PUBLICATION OF FINANCIAL MANAGEMENT INFORMATION The players involved There are many participants in the production of financial data: the Board of Directors , and more specifically its Audit and Internal p Control Committee , has the task of examining the draft financial statements which are to be submitted to the Board, as well as verifying the conditions under which they were prepared and ensuring not only the relevance but also the consistency of the accounting principles and methods applied. The Audit and Internal Control Committee’s remit also is to monitor the independence of the Statutory Auditors, and the effectiveness of the internal control, measurement, supervision and control systems for risk related to the accounting and financial processes. The Statutory Auditors meet with the Audit and Internal Control Committee during the course of their assignment; the Group Finance Division gathers all accounting and p management data compiled by the subsidiaries and the Business Units/Services Units in a set of standardised reports. It consolidates and verifies this information so that it can be used in the overall management of the Group and disclosed to third parties (supervisory bodies, investors, etc.). It also has a team in charge of the preparation of the Group regulatory reports; In the framework of these missions, it is in charge of: monitoring the financial aspects of the Group’s capital - transactions and its financial structure, managing its assets and liabilities, and consequently defining, - managing and controlling the Group’s financial position and structural risks, ensuring that the regulatory financial ratios are respected, - defining accounting standards, frameworks, principles and - procedures for the Group, and ensuring that they are observed, verifying the accuracy of all financial and accounting data - published by the Group; the Finance Divisions of subsidiaries and Business Units/Services p Units carry out certification of the accounting data and entries booked by the back offices and of the management data submitted by the front offices. They are accountable for the financial statements and regulatory information required at the local level and submit reports (accounting data, finance control, regulatory reports, etc.) to the Group Finance Division. They can perform these activities on their own or else delegate their tasks to Shared Service Centers operating in finance and placed under Group Finance Division governance; the Risk Division consolidates the risk monitoring data from the p Group’s Business Units/Services Units and subsidiaries in order to control credit, market and operational risks. This information is used in Group communications to the Group’s governing bodies and to third parties. Furthermore, it ensures in collaboration with the Group Finance Division, its expert role on the dimensions of credit risk, structural liquidity risks, rates, exchange rates, on the issues of recovery and resolution and the responsibility of certain closing processes, notably the production of solvency ratios; the Back offices are responsible for all support functions to front p offices and ensure contractual settlements and deliveries. Among other responsibilities, they check that financial transactions are economically justified, book transactions and manage means of payment.