BNP PARIBAS ISSUANCE B.V.
management (including prevention) of legal risks within the Group through its advisory and control roles. Legal
risk refers to the potential loss to the BNP Paribas Group, whether financial or reputational, which impacts or
could impact one or more entities of the BNP Paribas Group and/or its employees, business lines, operations,
products and/or its services, and results from:
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Non-compliance with a law or regulation or a change in law(s) or regulation(s) (including a change in
the interpretation or application of a law or regulation by a court or competent authority and any
requirement of any regulatory or supervisory authority);
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A dispute (including all forms of alternative/extrajudicial dispute resolution and court orders) or an
investigation or inquiry by a regulatory or supervisory authority (with implications for Group Legal);
A contractual deficiency;
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A non-contractual matter.
The Group Legal Function is responsible for:
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The prevention of any failure or deficiency in a legal process that may involve the risk of a penalty,
reputational risk or financial loss, in all areas (legal risk by nature);
Management of risk relating to a conflict with a counterparty, a customer, a third party or a regulatory
body, resulting from a deficiency or default that could be attributable to the Group in the course of its
operations (legal risk as a consequence).
Tax risk
In each country where it operates. BNP Paribas is bound by specific local tax regulations applicable to
companies engaged, for example, in banking, insurance or financial services. The Tax Function ensures at a
global level that the tax risk is managed throughout all of the transactions conducted by the Group. In view of
the financial and reputational stakes. Finance and Compliance are involved in the tax risk monitoring process.
The Group Tax Department carries out the tax function and calls on the assistance of tax managers in certain
businesses and in the main geographical areas where the Group operates (as well as tax correspondents in
other geographical areas where the Group operates). In ensuring the coherence of the Group’s tax practices
and the global tax risk monitoring, the Group Tax Department:
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Has drawn up procedures covering all divisions, designed to ensure that tax risks are identified,
addressed and controlled appropriately;
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Has implemented a process of feedback aimed at contributing to the control of local tax risk;
Reports to Executive Management on tax risk developments;
Oversees tax-related operational risks and the internal audit recommendations fall within the Tax
Function’s scope of responsibility.
A Tax Coordination Committee, involving Finance and Compliance and, on an as-needed basis, the
businesses, is tasked with analysing the main tax issues with respect to the transactions the Group performs.
Cybersecurity and Technology risks
The use and protection of data and technologies are determining factors for the Bank’s activity and its
transformation process. While the Bank continues the roll-out of Digital Banking (for the Group’s customers
and partners) and Digital Working (for the Group’s employees), it must incorporate new technology and
innovative risk management practices and establish new working practices. This introduces new technological
risks in the cyber security arena. Technology management and information systems security is part of the
Group’s cyber security strategy. This strategy is focused on the preservation of the most sensitive data.
regularly adapting both its internal processes and procedures, and its employee training and awareness to
contend with increasingly sophisticated and varied threats.
To reinforce its technology and the protection of data, the Group has adopted a comprehensive approach to
cyber security management through its three lines of defence:
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Operational entities are the first line of defence. Since 2015, the Group has introduced across all of
the entities a transformation programme based on the international standard NIST (National Institute
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