Goldman Sachs 2013 Annual Report Download - page 83

Management’s Discussion and Analysis
‰Firmwide New Activity Committee. The Firmwide
New Activity Committee is responsible for reviewing new
activities and for establishing a process to identify and
review previously approved activities that are significant
and that have changed in complexity and/or structure or
present different reputational and suitability concerns
over time to consider whether these activities remain
appropriate. This committee is co-chaired by the firm’s
head of operations/chief operating officer for Europe,
Middle East and Africa and the chief administrative
officer of our Investment Management Division, who are
appointed by the Firmwide Client and Business Standards
Committee chairperson.
‰Firmwide Suitability Committee. The Firmwide
Suitability Committee is responsible for setting standards
and policies for product, transaction and client suitability
and providing a forum for consistency across divisions,
regions and products on suitability assessments. This
committee also reviews suitability matters escalated from
other firm committees. This committee is co-chaired by
the deputy head of our Global Compliance Division and
the co-head of our Investment Management Division,
who are appointed by the Firmwide Client and Business
Standards Committee chairperson.
Firmwide Risk Committee. The Firmwide Risk
Committee is globally responsible for the ongoing
monitoring and management of the firm’s financial risks.
Through both direct and delegated authority, the Firmwide
Risk Committee approves firmwide, product, divisional
and business-level limits for both market and credit risks,
approves sovereign credit risk limits and reviews results of
stress tests and scenario analyses. This committee is co-
chaired by the firm’s chief financial officer and a senior
managing director from the firm’s executive office, and
reports to the Management Committee. The following four
committees report to the Firmwide Risk Committee. The
chairperson of the Securities Division Risk Committee is
appointed by the chairpersons of the Firmwide Risk
Committee; the chairpersons of the Credit Policy and
Firmwide Operational Risk Committees are appointed by
the firm’s chief risk officer; and the chairpersons of the
Firmwide Finance Committee are appointed by the
Firmwide Risk Committee.
‰Securities Division Risk Committee. The Securities
Division Risk Committee sets market risk limits, subject
to overall firmwide risk limits, for the Securities Division
based on a number of risk measures, including but not
limited to VaR, stress tests, scenario analyses and balance
sheet levels. This committee is chaired by the chief risk
officer of our Securities Division.
‰Credit Policy Committee. The Credit Policy Committee
establishes and reviews broad firmwide credit policies
and parameters that are implemented by Credit Risk
Management. This committee is chaired by the firm’s
chief credit officer.
‰Firmwide Operational Risk Committee. The Firmwide
Operational Risk Committee provides oversight of the
ongoing development and implementation of our
operational risk policies, framework and methodologies,
and monitors the effectiveness of operational risk
management. This committee is co-chaired by a managing
director in Credit Risk Management and a managing
director in Operational Risk Management.
‰Firmwide Finance Committee. The Firmwide Finance
Committee has oversight responsibility for liquidity risk,
the size and composition of our balance sheet and capital
base, and credit ratings. This committee regularly reviews
our liquidity, balance sheet, funding position and
capitalization, approves related policies, and makes
recommendations as to any adjustments to be made in
light of current events, risks, exposures and regulatory
requirements. As a part of such oversight, among other
things, this committee reviews and approves balance
sheet limits and the size of our GCE. This committee is co-
chaired by the firm’s chief financial officer and the firm’s
global treasurer.
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