Integrated Report 2020-2021

A constant risk management culture

1. Rolling out our model

A constant risk management culture

The spread of Covid-19 and the government control and travel restriction measures imposed in a large number of countries led to a sharp slowdown in economic activity. Thanks to the vaccination programme, the rebound will take place, but many uncertainties remain regarding the timing of the end of the crisis.

Risk Appetite Statement

Crédit Agricole Group has published a risk appetite statement in compliance with European regulations. It is an integral, structuring part of the governance framework covering the Group’s strategy, risk management, financial management and profile.

Risk appetite refers to the type and aggregate level of risk that the Group is prepared to take on within the framework of its strategic objectives. It is determined on the basis of Crédit Agricole’s financial and risk management policies. Risk appetite is one of the factors that Executive Management and the Board of Directors take into account to define the Group’s growth path and devise the related operating strategies, in keeping with the Medium-Term Plan.

INTERNAL CONTROL SYSTEM

3 LINES OF DEFENCE 
  • 1st LINE OF DEFENCE Operational business lines
  • 2nd LINE OF DEFENCE Risk and Compliance business lines
  • 3rd LINE OF DEFENCE Audit business line

A risk identification process

Specific committees

BREAKDOWN OF GROSS OUTSTANDING CUSTOMER LOANS ATCRÉDIT AGRICOLE S.A.

CRÉDIT AGRICOLE S.A.

€416bn*

(* Gross outstanding loans to customers excluding credit institutions as at 31 December 2020.)

  • Corporates : 44%
  • Housing : 28%
  • Consumer credit : 10%
  • Leasing : 6%
  • Small businesses : 7%
  • Private Banking : 4%
  • Other : 1%

MAIN RISKS IN 2020

In an environment where the recovery remains very uncertain and will depend on the evolution of the pandemic and the ability of authorities to control it, the pace at which support plans are discontinued and the time it takes to return to normal economic conditions will be key in 2021. Furthermore, the debt burden of certain players, already high at the start of the crisis, has become even heavier over the past 12 months. Credit risk and changes in the quality of the portfolio therefore constitute one of the major risks of 2021. The main sectors to watch are those affected by the crisis: tourism, automotive, aeronautics, distribution and retail, shipping and commercial real estate. Lastly, special attention will be paid to cyber risk, further exacerbated by the development of remote operations and remote work.