GE 2014 Annual Report Download - page 36

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How We Focus on the Most Critical Enterprise Risks
“I have asked GE’s leaders to go deep on what I believe are
the four most critical risks facing the Company: product
quality, cybersecurity, liquidity and global compliance. Over
the years, we have built lines of defense around these
core risk focus areas.”
JEFF IMMELT
Chairman of the Board & Chief Executive Offi cer
LINES OF DEFENSE
CORE RISK
FOCUS AREAS
DEEP
DOMAIN
EXPERTISE
DISCIPLINED
BUSINESS PROCESSES &
CHALLENGE CULTURE
STRONG AUDIT &
THIRD PARTY
OVERSIGHT
BOARD
TRANSPARENCY &
MANAGEMENT
OVERSIGHT
Product quality • 45,000+ engineers,
including 1,000+ PhDs
• Global Research Centers
• Chief Engineers’ Council
• Product Safety Boards
• Services Council
• Regulators…e.g.,
FAA, FDA, CFPB, NRC
Cybersecurity • 11,000+ IT & cyber
professionals
• IT Security
Operations Center
• Increased investment
2.5x since 2009
• Product/system design
for security
• Installed base
remediation
• Cybersecurity Task Force
• Product Security Incident
Response Team
• Internal audit…
Corporate Audit Staff
• Penetration testing
challenges…red team
• Wurldtech…industrial
product design
Liquidity
(through a crisis)
• 750+ Treasury
professionals
• Stress-testing
• Limits on commercial
paper levels to cash &
bank lines of credit
• Cash fl ow metrics
in compensation plans
• Credit rating agencies
• Federal Reserve,
OCC, FDIC
Global
compliance
• 750+ compliance
professionals
• ~500 ombuds
• Policy Compliance Review
Board…3 meetings &
9 compliance operating
reviews in ’14
• Global Ombuds System
• Deep culture of integrity
(Spirit & Letter)…our leaders
own it
• External audit…KPMG
(~360 partners & 500k+
audit hours annually)
• Internal audit…
Corporate Audit Staff &
GE Capital Audit
• Ethisphere Magazine…
GE named world’s most
ethical company 8 years
in a row
SEE NEXT
PAGE
16 GE 2014 FORM 10-K