RBS 2011 Annual Report Download - page 108

106 RBS Group 2011
Introduction*: Risk governance continued
Board/Committee Risk focus Membership
Capital and Stress Testing
Committee
The Capital and Stress Testing Committee is a sub-
committee of the Group Asset and Liability Management
Committee and focuses on the broad risk capital agenda,
including risk appetite, capital usage, stress testing, Internal
Capital Adequacy Assessment Process, capital planning,
allocation and management, economic capital and prudential
developments, including Basel oversight.
Group Finance Director
Key Group Finance function heads
Key Group Risk function heads
Executive Credit Group The Executive Credit Group decides on requests for the
extension of existing or new credit limits on behalf of the
Group Board where the proposed aggregate facility limits are
in excess of the credit approval authorities granted to
individuals in divisions or in Group Risk Management, or
where an appeal against a decline decision of the Group
Chief Credit Officer (or delegates) or Group Chief Risk
Officer is referred for final decision.
Group A members (1)
Head of Restructuring and Risk
Deputy Chief Risk Officer
Group Chief Credit Officer/Chief Credit Officer N.V.
Head of Global Restructuring Group
Chief Risk Officer, Non-Core division/APS (alternate)
Group B members (1)
Group Chief Executive
Group Finance Director
Chief Executive officers of divisions
(1) Decisions require input from at least one member from each of
Group A and Group B.
Divisional Risk and Audit
Committees
Divisional Risk and Audit Committees report to the Board
Risk Committee and the Group Audit Committee on a
quarterly basis. Their main responsibilities are to:
xmonitor the performance of the divisions relative to
divisional and Group risk appetite;
xreview matters relative to accounting policies, internal
control, financial reporting, internal audit, external audit
and regulatory compliance as set out in their terms of
reference; and
xassist on such other matters as may be referred to them
by the relevant divisional Executive Committee, the
Group Audit Committee or the Board Risk Committee.
Members: at least three non-executive members who
are executives of the Group who do not have
executive responsibility in the relevant division.
Attendees: at least two executives of the division, as
appropriate. Representatives from finance, risk,
internal audit and external audit.
Members of the Board Risk Committee and Group
Audit Committee also have the right to attend.
*unaudited
Business review Risk and balance sheet management continued