Citibank 2013 Annual Report Download - page 88

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The positions of Product Chief Risk Officers are established for those risk
areas of critical importance to Citi, currently fundamental credit, market risk
and real estate risk. The Product Chief Risk Officers are accountable for the
risks within their specialties across businesses and regions. The Product Chief
Risk Officers serve as a resource to the Chief Risk Officer, as well as to the
Business and Regional Chief Risk Officers, to better enable the Business and
Regional Chief Risk Officers to focus on the day-to-day management of risks
and responsiveness to business flow. The Chief Administrative Officer oversees
the day-to-day management of the risk management organization as well as
Board of Director communication, risk policies and risk governance matters.
Each of the Business, Regional and Product Chief Risk Officers reports
to Citi’s Chief Risk Officer, who reports to the Head of Franchise Risk and
Strategy, a direct report to the Chief Executive Officer.
Chief Risk
Officer
Fundamental Credit
Market and Real Estate Risk,
Treasury & Model Validation
Product
Chief Risk
Officers
Asia
Regions /
Legal
Entities
EMEA
Mexico & Latin America
Citi Holdings
Citibank, N.A. & Japan
Global Commercial
Global Consumer
Institutional Clients Group
Private Bank
Business Chief Risk
Officers
Systemic Risk
Global Risk Management
Chief Administrative Office
Risk Management Organization
Policies and Processes
Citi has established a robust process to oversee risk policy creation, ownership
and ongoing management. Specifically, the Chief Risk Officer and the Risk
Management Executive Committee (as described below), in some cases
through established committees:
•฀฀establish core policies to articulate rules and behaviors for activities where
capital is at risk; and
•฀฀establish policy standards, procedures, guidelines, risk limits and limit
adherence processes covering new and current risk exposures across Citi
that are in alignment with the risk appetite of the firm.
Key processes, as described below, include Risk Committees, Risk
Aggregation and Stress Testing, and Risk Capital.
Key Risk Committees are established across the firm and broadly cover
either (a) overall governance or (b) new or complex product governance.
Overall Governance
•฀฀Risk Management Executive Committee: chaired by Citi’s Chief Risk
Officer. Membership includes all direct reports of the Chief Risk Officer,
as well as certain reports of the Head of Franchise Risk and Strategy. This
Committee generally meets bi-weekly to discuss key risk issues across
businesses, products and regions.
•฀฀Citibank, N.A. Risk Committee: chaired by the Citibank, N.A Chief
Risk Officer. Membership includes the Citibank, N.A Chief Executive
Officer, Chief Operating Officer, Chief Financial Officer, Treasurer, Chief
Compliance Officer, Chief Lending Officer and General Counsel. The
Citibank, N.A. Risk Committee is responsible for reviewing the risk appetite
framework, thresholds and usage against the established thresholds for
Citibank, N.A. The Committee is also responsible for reviewing reports
designed to monitor market, credit, operational and other risk types
within the bank.