Capital One 2008 Annual Report Download - page 23

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5
Finally, we recognize that maintaining appropriate capital levels is a particular concern in todays environment. In September, we
raised $760.8 million of new common equity to provide insurance that would be able to seize new opportunities as they arose and to
protect our capital position from the potential for unanticipated credit deterioration. In October, we agreed to issue $3.5 billion of
preferred stock and warrants to the U.S. Treasury under the Capital Purchase Program to protect against any potential risks to our
regulatory capital ratios. We plan and manage our balance sheet, lending and investment activities to conform to our views regarding
capital sufficiency. Ensuring that we have sufficient capital is one of the core functions of our Finance Department, Executive
Committee, ALCO Committee, Finance Committee of the Board and our full Board of Directors. See Section X. Capital for further
discussion regarding capital.
Risk Management Roles and Responsibilities
The Board of Directors is responsible for:
establishing Capital Ones overall risk framework;
authorizing, approving, and overseeing execution of the Enterprise Risk Management Policy; and
reviewing Capital Ones risk profile and establishing the overall risk appetite.
The Chief Executive Officer is responsible for:
managing the companys overall risk position;
appointing the Chief Risk Officer, subject to the Boards approval;
appointing executives to the Risk Management Committee, in coordination with the Chief Risk Officer; and
selecting Risk Stewards for each risk category based on subject matter expertise and organizational authority.
The Division Presidents are responsible for:
identifying risks and implementing appropriate risk controls when pursuing their business strategies and objectives;
ensuring their businesses operate within the corporate risk appetite and comply with policies and procedures established
by the Risk Stewards;
considering risk when developing strategic plans, budgets, and new products, including mitigating risk when necessary;
producing risk reporting that is relevant, sufficient, accurate and timely; and
designating Business Chief Risk Officers for their respective divisions.
The Chief Risk Officer is responsible for:
assessing the quality of Capital Ones risk management program and driving appropriate action to resolve gaps in the risk
management program or in risk mitigation;
establishing and implementing Capital Ones overall Enterprise Risk Management Policy;
overseeing the overall Enterprise Risk Management Program;
chairing the Risk Management Committee;
appointing the Enterprise Risk Management Executive; and
aggregating risks and reporting Capital Ones risk profile to the Board of Directors.
The Enterprise Risk Management Executive is responsible for:
providing frameworks, tools and methods to identify and manage risk;
monitoring adherence with the Enterprise Risk Management Policy;
analyzing, aggregating, and recommending risks for top risk designation;
managing processes and providing tools for identification, aggregation and mitigation of risks across all risk categories;
and
managing risk related to horizontal functions on behalf of the entire company.