Risk management is an inherent part of the banking business and is one of the cornerstones of BNP Paribas’ operational procedures.

The General Management has established an internal control system whose primary aim is to:

  • Ensure the overall control of risks
  • Provide reasonable assurance that the objectives set by the company in this respect will be met

The internal control charter identifies the following objectives:

  • Developing a high level risk culture among employees
  • Efficiency and quality of the enterprise  operating model  
  • Reliability of internal and external information (particularly with respect to accounting and financial information)
  • Security of  the operations, compliance with laws, regulatory requirements and internal policies

Permanent Controls, an Integral Part of Internal Controls

Internal control consists of permanent control and periodic inspection (Internal Audit/ General Inspection), complementary to but distinct and independent of one another. An internal control Coordination Committee periodically brings together the key individuals involved in permanent controls, the heads of core businesses or their deputies, and the head of periodic controls.

Permanent control is the mechanism for implementing, on an ongoing basis, actions to keep risks under control and to monitor the implementation of strategic actions. It applies to all types of risks encountered by BNP Paribas.

Permanent control relies:

  • Firstly, on operational staff, who are initially accountable for the risks generated by the activities for which they are responsible
  • Secondly, on independent control functions (Risk, Compliance, etc.) whose primary responsibility is to oversee the way in which risks are taken and managed by operational staff, particularly by taking a second look at certain decisions.

In the event of a disagreement between these two parties, an escalation procedure is triggered.