A _ To Our Investors In addition, the committee dealt extensively with the compliance system and the internal auditing system, as well as the accounting process and internal financial reporting control mechanisms. At several meetings, the Audit Committee discussed with the Board of Management the effects of the changeover to the new accounting standards IFRS 9 & 17 with its respective effects on Allianz’s accounting from financial year 2023 onwards and the status of the implementation measures for a proper transition to the new standards. At all regular meetings, reports on legal and compliance issues in the Group, operational risks and the work of the Internal Audit department were presented and discussed in detail. Furthermore, the head of the actuarial function (Group Actuarial, Planning & Controlling) presented his annual report. In addition, the Audit Committee discussed the adjustments resulting from the Financial Market Integrity Strengthening Act (FISG), and the internal audit plan for 2022. The Audit Committee held in-depth discussions with the Board of Management on the progress of the civil as well as the administrative proceedings of the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice in the matter of the Structured Alpha Funds of AllianzGI U.S. A separate working group of the Audit Committee was additionally set up for this purpose; this group held four meetings in the reporting year, which were also attended by the lawyers engaged by the Supervisory Board. The Risk Committee held two meetings in 2021. At both meetings, the committee discussed the current risk situation of the Allianz Group and Allianz SE with the Board of Management. In the March meeting, the risk report and other risk-related statements in the annual Allianz SE and consolidated financial statements as well as management and group management reports were reviewed with the auditor and approved. The appropriateness of the early risk recognition system at Allianz SE and Allianz Group and the result of further risk assessments by the auditor were also discussed. The Audit Committee was recommended to include the Risk Report, as presented and discussed, in the Annual Report. At both meetings, the Risk Committee examined the risk strategy in detail, including risk appetite, capital management and the external rating as well as the effectiveness of the risk management system for the Allianz Group and Allianz SE. The committee further looked in detail at the report on Allianz’s own risk and solvency assessment and the changes to the internal Solvency II model, and held discussions with the Board of Management, in particular about transactions with portfolios in the life insurance sector to improve the return on equity and the solvency position. The Risk Committee also focused on the topic of inflation risk and, in this context, Allianz’s exposure in the event of rising inflation rates and the consideration of inflation trends in pricing, as well as on the developments relating to “silent cyber”, i.e., the unintended, implied coverage of cyber risks, especially in the area of commercial insurance. In addition, the consequences of the COVID-19 pandemic were again addressed with regard to the business development and risk situation, the management of reputational risks and accumulation risks as well as the management of non- financial risks. The Risk Committee also dealt extensively with the impact of the AllianzGI Structured Alpha matter on the risk situation at Allianz. In addition, special regulatory topics, such as the EIOPA review of Solvency II, as well as business policy topics were also on the agenda. The Technology Committee held two meetings in the financial year 2021, at which it discussed in detail the reorganization of information technology in the Allianz Group, the IT strategy and, in particular, the strategic IT partners in cloud and IT applications, and in the comprehensive IT transformation. The focus was again on the implementation of the Business Master Platform (BMP) in the context of the Allianz Customer Model (ACM). Another focus of the committee’s activities was dealing with the ever-growing cyber risks and the resulting increase in IT security requirements, as well as Allianz’s use of disruptive technology innovations, e.g., the Internet of Things and Digital Twins. 8 Annual Report 2021 − Allianz Group