BPCE_REGISTRATION_DOCUMENT_2017

RISK REPORT Non-compliance risks, security and operational risks

BREAKDOWN OF LOSSES

BREAKDOWN OF GROSS LOSSES BY BASEL BUSINESS ➡ LINE

BREAKDOWN OF GROSS LOSSES BY BASEL ➡ CATEGORY

Corporate Finance 1%

Asset Management 13% Branch Services 0%

Internal fraud 2%

Execution, delivery and process management 30%

Trading and Sales to Institutional Clients 15%

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Business interruption and system malfunctions 0%

Retail Brokerage 0%

Payment and settlement 14%

External fraud 42%

Damage to property, plant and equipment 1%

Commercial Banking 28%

Retail Banking 28%

Customers, products and commercial practices 25%

Employment and occupational safety practices 0%

56% of Groupe BPCE’s losses were generated by the following two business lines: retail banking(28%); ● commercial banking (28%). ●

Gross losses are predominantly generated in the following Basel categories: “fraud”, “execution,delivery and proceduremanagement” and “customers, products and commercial practices”.

OPERATIONAL RISK MITIGATION TECHNIQUES In terms of insurance, the networks and subsidiaries benefit from coverage of their insurable operational risks under group insurance policiescontractedfrom leadinginsurancecompanies.In addition,the Group has set upits own captive insurance company.

the “Global Banking” component of the insurance coverage - described inpoint A.d) below. the following main insurance policies to cover its insurable operationalrisks and protectits balance sheet and incomestatement: A. A combined “Global Banking (Damages to Valuables and Fraud)” & “ProfessionalCivil Liability”policy with a total maximumpayout of € 178 million per year of insurance, of which: € 30 million per year, combined “Fraud/ProfessionalCivil Liability” a) insurance available, subordinate to the amounts guaranteed set out in b) and/or c) and/or d) below (with Natixis also holding its own similar coverage with a maximumpayout of € 15 million per year); € 38 million per claim and per year, solely reserved for “Global b) Banking” risk; € 25 million per claim and per year, solely reserved for c) “Professional CivilLiability”risk; € 70 million per claim and per year, combined “Global d) Banking/ProfessionalCivil Liability”insuranceavailablein addition to or after use of the amounts guaranteedset out in b) and/or c) above. The maximumamount that can be paid out for any one claim under this arrangement is € 109.75 million under “Professional Civil Liability” coverage and € 109.75 million under “Fraud” coverage in excess of the applicable deductibles. B. “Regulated Intermediation Liability” (in three areas: Financial Intermediation, Insurance Intermediation, Real Estate Transactions/Management) with a total maximum payout of € 10 million per claim and per year.

Coverage of insurable risks At January1, 2017, BPCE SA had takenout, for itself:

and for its subsidiaries, with the exception of Natixis concerning ● the insurance coverage described in point A.a) below, with Natixis also holding its own similar coverage with a maximum payout of € 15 million per year, and for the Banque Populaire and Caisse d’Epargne networks, ● except for: Caisse d’Epargne Rhône Alpes concerning: ● the “Fraud” component of the insurance coverage described in - point A.a) below, the “Global Banking” insurance coverage described in point A.b) - below, the “Global Banking” component of the insurance coverage - described inpoint A.d) below, and the insurancecoveragefor “PropertyDamage”to “Registered - Offices & Similar” and to their contents (includingIT equipment) and the consecutivelosses in bankingactivitiesdescribedin point E below; Caisse d’Epargne Ile-de-France concerning: ● the “Fraud” component of the insurance coverage described in - point A.a) below, the “Global Banking” insurance coverage described in point A.b) - below,

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Registration document 2017