Governance and Control at AXA

AXA ensured that the principles of good corporate governance were implemented across the group. All the subsidiaries were governed by a board, which included non-executive directors. An audit committee with independent members also oversaw the functioning of the subsidiaries. All the subsidiaries were made aware of the group's strategy, operational objectives, reporting lines and accountability for organizational objectives. Formal guidelines for business and operations were in place along with a written code of ethics, anti-fraud, and anti-laundering policies. All the subsidiaries of AXA prepared three-year forecasts. AXA aimed at exercising control over the forecasts developed by the subsidiaries by subjecting the forecasts to critical review.

AXA reaped several benefits by striking a balance between centralization and decentralization of its operations. The company had firm control over some of the most important activities and was able to steer the subsidiaries toward the growth path.

At the same time, the subsidiaries were free to carry out their day-to-day operations. Due to geographical diversification, the group's volatility of earnings went down. AXA was able to replicate the best practices in one country in other countries and thus obtain a competitive advantage over local players...