FOUNDATIONS OF INTERNAL CONTROL

Société Générale implements the recommendations given in the AFEP-MEDEF report of September 2002 on the corporate governance of listed companies.

Building blocks of internal control

The following sections outline the main principles behind internal control at Société Générale. The Group’s complete policy is outlined in the bank’s registration document for 2010 which is available online at www.socgen.com (See also here).
In June 2004, the Basel Committee defined the four principles - independence, universality, impartiality and sufficient resources - which should form the basis of internal audits carried out by credit institutions.
At Société Générale, these principles have been applied through various directives.
Internal control covers all resources that enable the Group’s General Management to ensure that transactions carried out and the organisation and procedures in place within the company are compliant with the legal and regulatory provisions in force, professional and ethical practices, internal regulations and the policies defined by its executive bodies.
Internal control is designed in particular to :
  • Detect and measure the risks borne by the company and ensure they are adequately controlled,
  • Guarantee the reliability, exhaustiveness and accuracy of financial and management data,
  • Verify the integrity and availability of information and communication systems. whitespacer
Within Société Générale, a Deputy Chief Executive Officer is responsible for ensuring the overall consistency and efficiency of its internal control systems. He chairs the Group Internal Control Coordination Committee (CCCI) which includes the Corporate Secretary, the Chief Risk Officer, the Chief Financial Officer, the Chief Information Officer, the Head of Group Internal Audit and the Head of Internal Control Coordination. The Committee met eight times in 2009.
Following a decision by the Group’s Executive Committee, all of the Group’s business lines and corporate departments also have an Internal Control Coordination Committee. Chaired by the head of each business line or functional division, these Committees bring together the competent heads of periodic and permanent control for the business line or functional division, as well as the Head of Group Internal Control Coordination and the heads of the Group's internal control structures.