RBS 2011 Annual Report Download - page 105

RBS Group 2011 103
The GPF was introduced in 2009. Enhancements applied in 2011
included the following:
The GPF was introduced in 2009. Enhancements applied in 2011
included the following:
xthe Group’s policy standards, which comprise the GPF, were
rewritten to ensure they clearly express the mandatory controls
required to mitigate the key risks the Group faces;
xthe Group’s policy standards, which comprise the GPF, were
rewritten to ensure they clearly express the mandatory controls
required to mitigate the key risks the Group faces;
xall of the Group’s policy standards were benchmarked against
relevant external reference points such as peer organisations to
challenge and verify the content of the policy standards. Where
identified, further improvements to the policy standards are now
being implemented;
xall of the Group’s policy standards were benchmarked against
relevant external reference points such as peer organisations to
challenge and verify the content of the policy standards. Where
identified, further improvements to the policy standards are now
being implemented;
xfor each policy standard, appropriate risk based assurance activity
was introduced to ensure each division is appropriately controlled
and compliance with policy can be demonstrated; and
xfor each policy standard, appropriate risk based assurance activity
was introduced to ensure each division is appropriately controlled
and compliance with policy can be demonstrated; and
xrisk appetite has its own policy standard within the GPF that clearly
sets out roles and responsibilities in relation to the implementation of
the risk appetite framework and provides assurance that risks are
being actively managed within approved levels and tolerances.
xrisk appetite has its own policy standard within the GPF that clearly
sets out roles and responsibilities in relation to the implementation of
the risk appetite framework and provides assurance that risks are
being actively managed within approved levels and tolerances.
The GPF will continue to be improved and embedded. The results of
assurance activity, monitoring and analysis of the internal and external
environment will be used to reassess the policy standards on a regular
basis.
The GPF will continue to be improved and embedded. The results of
assurance activity, monitoring and analysis of the internal and external
environment will be used to reassess the policy standards on a regular
basis.
Risk governance* Risk governance*
The Group is committed to the highest standards of corporate
governance in every aspect of the business, including risk management.
The Group is committed to the highest standards of corporate
governance in every aspect of the business, including risk management.
Akey aspect of the Group Board’s responsibility as the main decision
making body at Group level is the setting of Group risk appetite to ensure
that the levels of risk that the Group is willing to accept in the attainment
of its strategic business and financial objectives are clearly understood.
Akey aspect of the Group Board’s responsibility as the main decision
making body at Group level is the setting of Group risk appetite to ensure
that the levels of risk that the Group is willing to accept in the attainment
of its strategic business and financial objectives are clearly understood.
To enable the Group Board to carry out its objectives, it has delegated
authority to senior Board and executive committees, as required and
appropriate. A number of key committees specifically consider risk across
the Group, as set out in the diagram below.
To enable the Group Board to carry out its objectives, it has delegated
authority to senior Board and executive committees, as required and
appropriate. A number of key committees specifically consider risk across
the Group, as set out in the diagram below.
comprises independent non-executive directors comprises independent non-executive directors
Notes: Notes:
(1) The Capital and Stress Testing Committee is a sub-committee of the Group Asset and Liability Management Committee. (1) The Capital and Stress Testing Committee is a sub-committee of the Group Asset and Liability Management Committee.
(2) The following specialist sub-committees report directly to the Group Risk Committee: Global Markets Risk Committee, Group Country Risk Committee, Group Models Committee, Group Credit Risk
Committee and Operational Risk Executive Committee. In addition, Divisional Risk Committees report to the Group Risk Committee.
(2) The following specialist sub-committees report directly to the Group Risk Committee: Global Markets Risk Committee, Group Country Risk Committee, Group Models Committee, Group Credit Risk
Committee and Operational Risk Executive Committee. In addition, Divisional Risk Committees report to the Group Risk Committee.
Group Board
Executive
Committee
Board Risk
Committee
Group Audit
Committee
Group Remuneration
Committee
Executive
Credit Group
Executive
Risk Forum
Group Asset and
Liability Management
Committee (1)
Group Risk
Committee (2)
Divisional Risk and
Audit Committees
Group Board
Group Board
Group Remuneration
Committee
Group Board
Group Audit
Committee
Comprises independent
non-executive directors
Group Board
Board Risk
Committee
Group Board
Executive
Committee
Group Board
Group Risk
Committee(2)
Group Board
Group Asset and
Liability Management
Committee(1)
Executive
Credit Group
Executive
Risk Forum
Divisional Risk and
Audit Committees