GE 2014 Annual Report Download - page 37

CORPORATE
AUDIT STAFF &
GECC AUDIT
GE CAPITAL ENTERPRISE
RISK MANAGEMENT
COMMITTEE
GECC BOARD
GE BOARD
For more details, please see Risk Management on page 107 & Risk Factors on page 112.
BOARD
OVERSIGHT
STRATEGIC RISK
GLOBAL MACRO-ENVIRONMENT
Our growth is subject to global economic and political risks.
M&A/RESTRUCTURING
The success of our business depends on achieving our strategic
objectives, including through acquisitions, joint ventures, dispositions
and restructurings.
INTELLECTUAL PROPERTY
Our intellectual property portfolio may not prevent competitors from
independently developing products and services similar to or duplicative
to ours.
OPERATIONAL RISK
OPERATIONS
We may face operational challenges that could have a material adverse
effect on our business, reputation, fi nancial position and results of
operations, and we are dependent on maintenance of existing product
lines, market acceptance of new product and service introductions
and product and service innovations for continued revenue and
earnings growth.
CYBERSECURITY
Increased cybersecurity requirements, vulnerabilities, threats and more
sophisticated and targeted computer crime could pose a risk to our
systems, networks, products, solutions, services and data.
SUPPLY CHAIN
Signifi cant raw material shortages, supplier capacity constraints,
supplier production disruptions, supplier quality and sourcing issues or
price increases could increase our operating costs and adversely impact
the competitive positions of our products.
FINANCIAL RISK
ECONOMY/COUNTER-PARTIES
A deterioration of conditions in the global economy, the major industries
we serve or the fi nancial markets, or the soundness of fi nancial institu-
tions and governments we deal with, may adversely affect our business
and results of operations.
CREDIT RATINGS
Failure to maintain our credit ratings could adversely affect our cost of
funds and related margins, liquidity, competitive position and access to
capital markets.
FUNDING ACCESS/COSTS
Conditions in the fi nancial and credit markets may affect the availability
and cost of funding.
SOCIAL COSTS
Sustained increases in pension and healthcare benefi ts costs may
reduce our profi tability.
LEGAL & COMPLIANCE RISK
REGULATORY
We are subject to a wide variety of laws, regulations and government
policies that may change in signifi cant ways.
DODD-FRANK
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act,
we are subject to prudential oversight by the Federal Reserve, including
as a result of GECC’s designation as a nonbank systemically important
fi nancial institution (nonbank SIFI), which subjects us to increased and
evolving regulatory requirements.
LEGAL PROCEEDINGS
We are subject to legal proceedings and legal compliance risks.
Each committee
oversees risk in its area
of expertise & reports
to the full Board
GOVERNANCE &
PUBLIC AFFAIRS
COMMITTEE
AUDIT
COMMITTEE MANAGEMENT DEVELOPMENT &
COMPENSATION
COMMITTEE
SCIENCE &
TECHNOLOGY
COMMITTEE
RISK
COMMITTEE
POLICY
COMPLIANCE
REVIEW BOARD
GE
BLUEPRINT
REVIEWS
MANAGEMENT
OVERSIGHT
How We Oversee Risk
GE 2014 FORM 10-K 17