AFD - 2018 Registration document

RISK MANAGEMENT

Risk management

The Audit Committee Reporting to the Board of Directors, the Group Audit Committee is provided for in the bylaws. Since the Group’s Risk Committee was set up, it has been in charge of (i) checking

the clarity of the information provided and assessing the relevance of accounting methods, (ii) assessing the quality of internal control from an accounting and financial perspective, (iii) overseeing the choice of statutory auditors;

P

COMPOSITION AS AT 31/12/2018:

Date of resolution Term ends Position

NAME

FIRST NAME Organisation

Chairman of the Group Audit Committee and Risk Committee MATTEI Jean-Louis Qualified person

18/05/2017 17/05/2020 Chairman, Alternate Director of the AFD Board of Directors

Members of the Group Audit Committee ROUSSEAU Cyril

Directorate General of the Treasury, MINEFI

21/12/2017 20/12/2020 Member of the Audit Committee, Director, alternate member of the AFD Board of Directors 12/07/2018 20/12/2020 Member of the Audit Committee, Director, alternate member of the AFD Board of Directors 20/12/2018 19/12/2021 Personnel representative, Director on the AFD Board of Directors, alternate member 21/12/2017 20/12/2020 Permanent member of the Risk Committee, Director, alternate member of the AFD Board of Directors 12/07/2018 20/12/2020 Permanent member of the Risk Committee, Director, alternate member of the AFD Board of Directors 20/12/2018 19/12/2021 Personnel representative, Director on the AFD Board of Directors, alternate member Department (DRG), the head of the General Inspection Department, the head of the Compliance Department, and the head of the Operational Risk and Permanent Control Department. It makes sure that systems are in place to monitor the activities and risks, per the Order of 3 November 2014, to ensure the AFD Group’s internal control system operates effectively. It mobilises management to put these systems in place. It is through this body that the heads of Periodic Control (the General Inspection department – IGE) and of Permanent Control and Compliance of AFD Group report on the fulfilment of their roles. The committee is also regularly informed of incidents and risks updated in the operations risk mapping. The Risk Committee (Coris) is responsible for handling its own risks within the field of operation of AFD Group, with a particular focus on macro-economic risks in the countries in which it operates (“country risk”) and credit risks (“counterparty risk”). It is chaired by the head of the AFD Executive Risk Department (DXR) and is attended by Senior Management.

PLAIS

Philippe

Budget Department, MINEFI

PICARD

Stéphanie AFD employee

4

Members of the Group Risk Committee ROUSSEAU Cyril

Directorate General of the Treasury, MINEFI

PLAIS

Philippe

Budget Department, MINEFI

PICARD

Stéphanie AFD employee

d) Risk monitoring Risk monitoring is ensured by the Group Risk Management Department (DRG) of the Executive Risk Department (DXR): by the Counterparty Risks division (DRC) at the individual level of credit risks and the Risk Monitoring Division (DSR) at a consolidated level, both for credit risks and market transactions. This supervision is not exclusive to this department: among other procedures, a six-monthly review of non-sovereign counterparties is conducted by local departments, credit transactions are referred for a second opinion (DXR/SOP) and the Finance Department provides strategic and financial guidance (DEF/PFG). e) Methods of informing executive officers The executive officers are informed through different channels which are essentially committees and executive officer memos. The Internal Control Committee (Cocint) comprises members of the AFD Executive Committee (including the Chief Executive Officer of Proparco), the head of the Group Risk Management

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REGISTRATION DOCUMENT 2018