GE 2015 Annual Report Download - page 141

RISK MANAGEMENT
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SENIOR MANAGEMENT
The GE %RDUG¶V risk oversight process builds upon PDQDJHPHQW¶V risk assessment and mitigation processes, which include
standardized reviews of long-term strategic and operational planning; executive development and evaluation; code of conduct
compliance under the &RPSDQ\¶V The Spirit & The Letter; regulatory compliance; health, safety and environmental compliance;
financial reporting and controllership; and information technology and security.
The Corporate Risk Function is responsible for overseeing and coordinating risk assessment and mitigation on an enterprise-wide
basis. It is responsible for the identification of key business risks, providing for appropriate oversight of the EXVLQHVVHV¶ management of
these risks within GE Board guidelines, and enforcement through policies and procedures.
OPERATING REVIEWS
CORPORATE AUDIT STAFF & GE CAPITAL AUDIT are responsible for reviewing the governance, processes, controls and
accuracy of *(¶V and GE &DSLWDO¶V financial and compliance reporting.
THE POLICY COMPLIANCE REVIEW BOARD is a management-level committee that further assists in assessing and mitigating
risk. The Policy Compliance Review Board, members of which participated in eight compliance operating reviews in 2015, is chaired by
the &RPSDQ\¶V general counsel and includes the Chief Financial Officer and other senior-level functional leaders. It has principal
responsibility for monitoring compliance matters across the Company.
GE BLUEPRINT REVIEWS are integrated business planning reviews across GE that evaluate strategic objectives, operating and
organizational performance, and enterprise risks. Blueprint reviews are held at least four times per year and include the most senior GE
business leaders.
GE &$3,7$/¶6 ENTERPRISE RISK MANAGEMENT COMMITTEE oversees the implementation of GE Capital¶V risk appetite,
and senior PDQDJHPHQW¶V establishment of appropriate systems to ensure enterprise risks are effectively identified, measured,
monitored, and controlled. Additional information on GE Capital¶V Enterprise Risk Management Committee can be found in the GE
Capital Risk Management and Mitigation section below.
RISK MANAGERS
Risk assessment and risk management are the responsibility of management and are carried out through risk managers who are
operationally integrated into each of our businesses. These risk managers bring deep domain expertise to the EXVLQHVVHV¶ operations
and core processes. Both risk managers and the business leadership teams have specific, enterprise risk focused goals and objectives
that are aligned with our overall risk framework.
RISK MITIGATION & COMMUNICATION
Risks identified through our risk management processes are prioritized and, depending on the probability and severity of the risk,
escalated as appropriate. Senior management discusses these risks periodically and assigns responsibility for them to the businesses.
The assigned owners continually monitor, evaluate and report on risks for which they bear responsibility. Enterprise risk leaders within
each business and corporate function are responsible to present risk assessments and key risks to senior management at least
annually. We have general response strategies for managing risks, which categorize risks according to whether the Company will
avoid, transfer, reduce or accept the risk. These response strategies are tailored to ensure that risk levels are within the CRPSDQ\¶V risk
appetite.
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