RBS 2012 Annual Report Download - page 122

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Business review Risk and balance sheet management continued
Risk appetite and risk governance: Risk governance* continued
Board/Committee Risk focus Membership
Capital and Stress Testing
Committee
The Capital and Stress Testing Committee leads the
integrated development and maintenance of risk capital
approaches, frameworks and standards. It reviews positions
and plans, agrees approaches and standards and provides
cross-functional challenge on the topics outlined in its terms
of reference. It is responsible to the Group Finance Director
and the Head of Restructuring and Risk for many of these
activities. It provides updates to the Group Asset and Liability
Management Committee and Group Risk Committee and
seeks approvals where necessary. It operates under
delegated authority from the Group Asset and Liability
Management Committee.
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 RBS 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, Corporate Banking
Group B members (1)
Group Chief Executive
Group Finance Director
Deputy Chief Executive Officers, M&IB
(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:
x monitor the performance of the divisions relative to
divisional and Group risk appetite; and
x review accounting policies, internal control, financial
reporting functions, internal audit, external audit and
regulatory compliance.
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