Paragraph 2: Risk Committees

The members of the Risk Committee have the knowledge, skills and expertise to understand and monitor the credit institution’s or finance company’s strategy and risk appetite.

The Risk Committee advises the Board of Directors, the Supervisory Board or any other body exercising equivalent supervisory functions on the overall strategy of the credit institution or finance company and its current and future risk appetite. It assists the Board of Directors, the Supervisory Board or any other body exercising equivalent supervisory functions when it monitors the implementation of this strategy by the persons mentioned in Article L. 511-13…

As part of its remit, the risk committee shall examine whether the prices of the products and services referred to in books II and III offered to customers are compatible with the risk strategy of the credit institution or finance company. Where these prices do not adequately reflect the risks, it shall present to the board of directors, the supervisory board or any other body exercising equivalent supervisory functions an…

Without prejudice to the remit of the remuneration committee referred to in Article L. 511-102, the risk committee shall examine whether the incentives provided for in the remuneration policy and practices of the credit institution or finance company are compatible with their situation in terms of the risks to which they are exposed, their capital, their liquidity and the probability and timing of expected profits.

The Board of Directors, the Supervisory Board or any other body exercising equivalent supervisory functions and, where applicable, the Risk Committee shall be provided with full information on the risk situation of the credit institution or finance company. They may, if necessary, call on the services of the head of the risk management function referred to in Article L. 511-64 or on external experts.

Credit institutions and finance companies other than those referred to in Article L. 511-89 may, with the authorisation of the Autorité de contrôle prudentiel et de résolution, entrust the tasks of the Risk Committee to the specialised committee referred to in Article L. 823-19 of the French Commercial Code.