Citibank 2013 Annual Report Download - page 89

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•฀฀Business and Regional Consumer Risk Committees: exist in all regions,
with broad engagement from business, risk and other control functions.
Among these risk committees is the Global Consumer Banking Risk
Committee, which is chaired by the Global Consumer Banking
Chief Executive Officer with the Global Consumer Banking Chief
Risk Officer as the vice chair. The Committee places an emphasis on
key performance trends, significant regulatory and control events and
management actions.
•฀฀ICG Risk Management Committee: reviews the risk profile of the
Institutional Clients Group, discusses pertinent risk issues in trading,
global transaction services, structuring and lending businesses and
reviews strategic risk decisions for consistency with Citi’s risk appetite.
Membership is comprised of Citi’s Chief Risk Officer and Head of
Franchise Risk and Strategy, as well as the Global Head of Markets,
the Chief Executive Officer and Chief Risk Officer of the Institutional
Clients Group.
•฀฀Business Risk, Compliance and Control Committees: exist at both the
business and segment levels. These Committees, which generally meet
on a quarterly basis, provide a senior management forum to focus
on internal control, legal, compliance, regulatory and other risk and
control issues.
•฀฀Business Practices Committee: a Citi-wide governance committee designed
to review practices involving potentially significant reputational or
franchise issues for the firm. Each business also has its own Business
Practices Committee. These Committees review whether Citi’s business
practices have been designed and implemented in a way that meets the
highest standards of professionalism, integrity and ethical behavior.
•฀฀Risk Policy Coordination Group: established to ensure a consistent
approach to risk policy architecture and risk management requirements
across Citi. Membership includes independent risk representatives from
each business, region and Citibank, N.A.
New or Complex Product Governance
New or complex product review committees have been established to
ensure that new product risks are identified, evaluated and determined to
be appropriate for Citi and its customers, and that the necessary approvals,
controls and accountabilities are in place.
•฀฀New Product Approval Committee: This Committee’s overall purpose is
to ensure that significant risks, including reputation and franchise risks,
in a new Institutional Clients Group product or service or complex
transaction, are identified and evaluated from all relevant perspectives,
determined to be appropriate, properly recorded for risk aggregation
purposes, effectively controlled, and have accountabilities in place.
Functions that participate in this Committee’s reviews (as necessary)
include Legal, Bank Regulatory, Risk, Compliance, Accounting Policy,
Product Control, and the Basel Interpretive Committee. Citibank, N.A.
management participates in reviews of this Committee’s proposals
contemplating the use of bank chain entities.
•฀฀Consumer Product Approval Committee (CPAC): a senior,
multidisciplinary approval committee for new products, services,
channels or geographies for Global Consumer Banking. Each region
has a regional CPAC, and a global CPAC addresses initiatives with high
anti-money-laundering risk or cross-border elements. The composition
of these Committees includes senior Risk, Legal, Compliance, Bank
Regulatory, Operations and Technology and Operational Risk executives
and is supported by other specialists, including fair lending. A member of
Citibank, N.A. senior management also participates in the CPAC process.
•฀฀Investment Products Risk Committee: this Committee chairs two new
product approval committees to facilitate analysis and discussion of new
retail investment products and services manufactured and/or distributed
by Citi.
•฀฀Manufacturing Product Approval Committee: responsible for reviewing
new or meaningfully modified products or transactions manufactured
by Citi that are distributed to individual investors as well as third-party
retail distributors of Citi manufactured products.
•฀฀Distribution Product Approval Committee: approves new investment
products and services, including those manufactured by third parties
as part of Citi’s “open architecture” distribution model, before they
are offered to individual investors via Citi distribution businesses (e.g.,
Private Bank, Consumer, etc.) and sets requirements for the periodic
review of existing products and services.
There are also many other committees across the firm that play critical
roles in the management of risks, such as the Asset and Liability Committee
(ALCO) and the Operational Risk Council.