Citibank 2014 Annual Report Download - page 86

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Chief Risk
Officer
Market and Real Estate Risk,
Treasury, Model Validation &
Systemic Risk
Product
Chief Risk
Officers
Asia
Regions /
Legal
Entities /
Segment
EMEA
Mexico & Latin America
Citi Holdings Segment
Citibank, N.A. & Japan
Global Commercial
Global Consumer
Institutional Clients Group
Private Bank
Business Chief Risk
Officers
Risk Governance Group & Chief Risk Officer Global Functions
Global Risk Management
Risk Management Organization
Fundamental Credit Risk
Policies and Processes
Citi has established robust processes to oversee the creation, ownership and
ongoing management of Citi’s risk policy. Specifically, Citi’s 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 aligned with Citi’s risk appetite.
Citi’s risk management processes include (i) key risk committees, (ii) risk
aggregation and stress testing and (iii) risk capital.
Key Risk Committees. Citi has established risk committees across the
Company that broadly cover either overall governance, or new or complex
product governance:
•฀ Risk Management Executive Committee: Citi’s Chief Risk Officer
chairs this committee. Members include all direct reports of Citi’s Chief
Risk Officer, as well as certain reports of the Head of Franchise Risk and
Strategy. The committee reviews key risk issues across businesses, products
and regions.
•฀ Citibank, N.A. Risk Committee: Citibank, N.A.’s Chief Risk Officer chairs
this committee. Members include the Citibank, N.A Chief Executive Officer,
Chief Financial Officer, Treasurer, Chief Compliance Officer, Chief Lending
Officer and General Counsel. The committee reviews the risk appetite
framework, thresholds and usage against the established thresholds for
Citibank, N.A. The committee also reviews reports designed to monitor
market, credit, operational and other risk types within the bank.
•฀ Business and Regional Consumer Risk Committees: These committees
exist in all regions, with broad engagement from the businesses, risk and
other control functions. These committees include the Global Consumer
Banking Risk Committee, which is chaired by the GCB Chief Executive
Officer with the GCB Chief Risk Officer as the vice chair. The committee
monitors key performance trends, significant regulatory and control
events and management actions.