RBS 2010 Annual Report Download - page 124

Introduction* continued
Governance continued
Committee Focus Membership
Executive Risk
Forum (ERF)
Acts on all strategic risk and control matters across the Group
including, but not limited to, credit risk, market risk, operational risk,
compliance and regulatory risk, enterprise risk, treasury and liquidity
risk, reputational risk, insurance risk and country risk.
Group Chief Executive
Head of Restructuring and Risk
Deputy Group Chief Risk Officer
Group Finance Director
Chief Executive from each division
Group Asset and
Liability Committee
(GALCO)
Identifies, manages and controls Group balance sheet risks. Group Finance Director
Director, Group Finance
Head of Restructuring and Risk
Chief Executive Officer from each division
Group Chief Accountant
Group Treasurer
Group Head of Capital Management
Global Head of Balance Sheet Management, Group
Treasury
Global Head of Markets
Head of Non-Core division
Group Risk
Committee (GRC)
Recommends and approves limits, policies, processes and
procedures to enable the effective management of risk across the
Group.
Head of Restructuring and Risk
Deputy Chief Risk Officer
Group Chief Credit Officer
Global Head of: Market and Insurance Risk;
Operational Risk; Country Risk and Firm Wide Risk
Director, Group Finance
Chief Operating Officer, RBS Risk Management
Director Group Compliance
Director Group Regulatory Affairs
Divisional Chief Executive Officers’ nominees
Chief Administrative Officer’s nominee for Business
Services
Divisional Chief Risk Officers
Chief Operating Officer Global Restructuring Group
These committees play a key role in ensuring that the Group's risk
appetite is supported by effective risk management through limit approval
and setting, monitoring and maintenance, reporting and escalation.
The Board Risk Committee considers and recommends for approval by
the Group Board, the Group's risk appetite framework and tolerance for
current and future strategy, taking into account the Group's capital
adequacy and the external risk environment.
The Executive Risk Forum is responsible for ensuring that the
implementation of strategy and operations are in line with the risk
appetite determined by the Board with a particular focus on identifying
and debating macro risks that could, if not managed effectively, impact
adherence to the Group’s strategic plan. This is reinforced through policy
and limit frameworks ensuring that all staff within the Group make
appropriate risk and reward trade-offs within pre-agreed boundaries.
The annual business planning and performance management processes
and associated activities together ensure that the expression of risk
appetite remains appropriate. Both GRC and GALCO support this work.
*unaudited
RBS Group 2010122
Business review continued
Executive Risk Forum
Board Risk Committee
Group Board
Group Strategy
Strategy and high
level Risk Appetite
Detailed
Risk Appetite
Risk Limits
Key Risk Appetite Measures
Strategic Risk Profile