Fannie Mae 2006 Annual Report Download - page 133

Board of Directors
Risk Policy and
Capital Committee
(RPCC)
Compliance
Committee
Audit Committee
Internal Audit
CEO
Chief Risk Office
Office of
Compliance
and Ethics
Capital Management
Committee
(capital management
activities)
Credit Risk
Committee
(credit risk)
Market Risk
Committee
(market & liquidity
risk)
Operational Risk
Committee
(operational risk)
Management
Executive
Committee
Compliance
Coordination
Committee
(legal & regulatory
compliance)
Management Level Subcommittees
Business Unit Risk Management
Oversight Roles
•CRO – credit, market,
operational and liquidity
risks
•CCO – legal and
regulatory compliance
•CFO – capital
management activities
Board of Directors
The Board of Directors is responsible for approving our risk governance framework and providing capital and
risk management oversight. The Board exercises its oversight of credit risk, market risk, operational risk and
liquidity risk through the Board’s Risk Policy and Capital Committee. The responsibilities of the Risk Policy
and Capital Committee include recommending for Board approval enterprise risk governance policy and limits
consistent with our mission, safety and soundness; overseeing the development of risk policies and procedures;
overseeing compliance with all enterprise-wide risk management policies; overseeing the Chief Risk Office;
and reviewing the sufficiency of personnel, systems and other risk management capabilities.
Chief Risk Office
The Chief Risk Office is an independent risk oversight organization with responsibility for oversight of credit
risk, market risk, operational risk and liquidity risk. The Chief Risk Officer is responsible for establishing our
overall risk governance structure and providing independent evaluation and oversight of our risk management
activities. In 2006 and 2007, we centralized oversight of our business continuity efforts, information security
programs, corporate insurance program and SOX Finance Team under our Operational Risk Oversight function
within the Chief Risk Office to further strengthen our existing operational risk programs.
Corporate Risk Management Committees
As depicted in the above chart, we have three management-level risk committees that focus on our major
categories of credit, market, liquidity and operational risks. Our two additional management-level risk
committees, the Capital Structure Committee and the Compliance Coordination Committee, focus on capital
management activities and our compliance with legal and regulatory requirements, respectively. Our
Compliance Coordination Committee also is responsible for coordinating the legal and regulatory compliance
risk governance functions with other control functions, such as Legal, Internal Audit and the Chief Risk
Office.
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