RBS 2010 Annual Report Download - page 123

The role and remit of these committees is set out below. These
committees are supported at a divisional level by a risk governance
structure embedded in the businesses. During 2010, Risk Management
has been enhanced by the appointment of a Deputy Chief Risk Officer to
whom the Divisional CROs and the functional risk heads now report.
Committee Focus Membership
Group Board The Group Board is the main decision making forum at Group level.
It ensures that the Group manages risk effectively through approving
and monitoring the Group’s risk appetite, considering Group stress
scenarios and agreed mitigants and identifying longer term strategic
threats to the Group’s business operations.
The Board of directors
Executive
Committee (ExCo)
This committee is responsible for managing Group-wide issues and
those operational issues material to the broader Group.
Group Chief Executive
Group Finance Director
Chief Administrative Officer
Chief Executive Officers: US Retail & Commercial and
Head of Americas; RBS Insurance; Global Banking &
Markets; UK Corporate; and UK Retail, Wealth and Ulster
Head of Restructuring and Risk
Board Risk
Committee (BRC)
The Board Risk Committee provides oversight and advice to the
Group Board in relation to current and potential future risk exposures
of the Group and risk strategy, including determination of risk
appetite and tolerance. It reviews the performance of the Group
relative to risk appetite and provides oversight of the effectiveness of
key Group policies, referred to as the Group Policy Framework.
At least three independent non-executive directors, one
of whom is the chairman of the Group Audit Committee
Group Audit
Committee (GAC)
The Group Audit Committee is responsible for assisting the Group
Board in carrying out its responsibilities relating to accounting
policies, internal control and financial reporting functions. It assists
on such other matters as may be referred to it by the Group Board
and acts as the Audit Committee of the Group Board. The Group
Audit Committee also identifies any matters within its remit which it
considers that action or improvement is needed and makes
recommendations as to the steps to be taken.
At least three independent non-executive directors, at
least one of whom is a financial expert as defined in the
SEC Rules under the US Exchange Act
Group
Remuneration
Committee
The Remuneration Committee is responsible for the overview of the
Group’s remuneration policy and remuneration governance
framework, ensuring that remuneration arrangements are consistent
with and promote effective risk management. The committee also
makes recommendations to the Board on the remuneration
arrangements for executive directors.
At least three independent non-executive directors
Executive Credit
Group (ECG)
The ECG decides on requests for the extension of existing or new
credit limits on behalf of the Board of directors where the proposed
aggregate facility limits are in excess of the credit approval
authorities granted to individuals in divisions or in RBS Risk
Management, or where an appeal against the decline decision of the
Group Chief Credit Officer (or delegates) or Group Chief Risk Officer
is referred for final decision.
Group A members
Head of Restructuring and Risk
Deputy Chief Risk Officer
Group Chief Credit Officer/Chief Credit Officer RBS N.V.
Head of Global Restructuring Group
Chief Risk Officer, Non-Core division/APS (alternate)
Group B members
Group Chief Executive
Chief Executive Officers: UK Retail, Wealth and Ulster;
US Retail & Commercial and Head of Americas; Global
Banking & Markets; RBS Insurance; UK Corporate
President, Global Banking & Markets
Group Finance Director
121RBS Group 2010
Business review
Risk and balance sheet management