2020 INTEGRATED REPORT

In an environment disrupted by the health crisis, the Group has been able to cope with the economic tensions that marked 2020 thanks to significant risk management in all its activities and to its culture of compliance. We have thus been able to support our clients and the financing of their investments while protecting them against associated risks.

In order to assess and manage the various risks to which BNP Paribas may be exposed, and to protect ourselves against them, we have set up an internal control system to identify them and anticipate major and emerging risks.

The major risks include risks that are likely to arise in the short term and have a significant impact on the Group’s financial results, reputation or sustainability. They include risks related to macro-economic conditions (such as the medium-term consequences of the current health crisis or systemic risks related to the increase in debt, for example); risks of trade regionalisation, associated with in particular possible re-localisation of productions lines in mature countries; laws and regulations applicable to financial institutions; political risk in emerging countries; cybersecurity and technological risk. Emerging risks are new or evolving. While their impact may be significant in the future, they are now difficult to quantify and assess with precision. These are technological innovations, changing regulatory environments, health risks (linked to a new bacteriological or viral infection, for example), and demographic and societal challenges.