Bank of America 2012 Annual Report Download - page 67

Bank of America 2012 
The chart below illustrates the inter-relationship among the Board, Board committees and management committees with the majority
of risk oversight responsibilities for the Corporation.
(1) Chart is not comprehensive; there may be additional subcommittees not represented in this chart. This presentation does not include committees for other legal entities.
(2) Reports through the Audit Committee for compliance and through the Enterprise Risk Committee for operational and reputational risk.
(3) Reports to the CEO and CFO with oversight by the Audit Committee.
Our Board’s Audit, Credit and Enterprise Risk Committees have
the principal responsibility for assisting the Board with enterprise-
wide oversight of the Corporation’s management and handling of
risk.
Our Audit Committee assists the Board in the oversight of,
among other things, the integrity of our consolidated financial
statements, our compliance with legal and regulatory
requirements, and the overall effectiveness of our system of
internal controls. Our Audit Committee also, taking into
consideration the Board’s allocation of the review of risk among
various committees of the Board, discusses with management
guidelines and policies to govern the process by which risk
assessment and risk management are undertaken, including the
assessment of our major financial risk exposures and the steps
management has taken to monitor and control such exposures.
Our Credit Committee oversees, among other things, the
identification and management of our credit exposures on an
enterprise-wide basis, our responses to trends affecting those
exposures, the adequacy of the allowance for credit losses and
our credit related policies.
Our Enterprise Risk Committee oversees, among other things,
our identification of, management of and planning for material risks
on an enterprise-wide basis, including market risk, interest rate
risk, liquidity risk, operational risk and reputational risk. Our
Enterprise Risk Committee also oversees our capital management
and liquidity planning.
Each of these committees regularly reports to our Board on
risk-related matters within the committee’s responsibilities, which
collectively provides our Board with integrated, thorough insight
about our management of our enterprise-wide risks. At meetings
of our Audit, Credit and Enterprise Risk Committees and our Board,
directors receive updates from management regarding enterprise
risk management, including our performance against our risk
appetite.
Executive management develops for Board approval the
Corporation’s Risk Framework, Risk Appetite Statement and
financial operating plans. Management monitors, and the Board
oversees, through the Credit, Enterprise Risk and Audit
Committees, financial performance, execution of the strategic and
financial operating plans, compliance with the risk appetite and
the adequacy of internal controls.