GE 2015 Annual Report Download - page 45

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Jeff Immelt
LINES OF DEFENSE
DEEP
DOMAIN
EXPERTISE
• 58,000+ engineers
• Global Research Centers
• 11,000+ IT & cyber
professionals
• IT Security Operations Center
• Increased investment
3X+ since 2009
• 750+ Treasury
professionals
• ~700 compliance
professionals
• ~600 ombuds
STRONG AUDIT
& THIRD-PARTY
OVERSIGHT
• Regulators…e.g.,
FAA, FDA, NRC
• Internal audit…
Corporate Audit Staff
• Red team…penetration
testing challenges
• Wurldtech…industrial
product design
• Credit rating agencies
• Regulators…e.g., FRB, PRA
• Internal audit…GE Capital
Audit
• External audit…KPMG
(~300 partners & 500K+ audit
hours annually)
• Internal audit…
Corporate Audit Staff &
GE Capital Audit
BOARD
TRANSPARENCY &
MANAGEMENT
OVERSIGHT
DISCIPLINED
BUSINESS
PROCESSES &
CHALLENGE
CULTURE
• Integrated GE-wide council
on product management,
supply chain & engineering
• Product Safety Boards
• Services Council
• Product/system
design for security
• Installed base
remediation
• Cybersecurity Task Force
• Product Security Incident
Response Team
• Risk oversight & stress
testing
• Cash flow metrics
in compensation plans
• Policy Compliance Review
Board…8 compliance
operating reviews in 2015
• Global Ombuds System
• Deep culture of integrity
(Spirit & Letter)…our
leaders own it
• Ethisphere Magazine…
GE named one of the world’s
most ethical companies
10 years in a row
PRODUCT
QUALITY CYBERSECURITY LIQUIDITY
(THROUGH A CRISIS) GLOBAL
COMPLIANCE
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.”
CORE RISK FOCUS AREAS
Chairman & Chief Executive Officer
GE Board
Each committee
oversees risk in its area
of expertise & reports
to the full Board
BOARD
OVERSIGHT
GOVERNANCE &
PUBLIC AFFAIRS
COMMITTEE
AUDIT
COMMITTEE
MANAGEMENT
DEVELOPMENT &
COMPENSATION
COMMITTEE
RISK
COMMITTEE
SCIENCE &
TECHNOLOGY
COMMITTEE
GE
BLUEPRINT
REVIEWS
MANAGEMENT
OVERSIGHT
GE CAPITAL ENTERPRISE
RISK MANAGEMENT
COMMITTEE
GE CAPITAL BOARD
CORPORATE
AUDIT STAFF &
GE CAPITAL AUDIT
POLICY
COMPLIANCE
REVIEW BOARD
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GE 2015 FORM 10-K 17