Goldman Sachs 2015 Annual Report Download - page 99

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
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 our global
treasurer and the chief administrative officer of our
Investment Management Division, who are appointed as
co-chairs by the chair of the Firmwide Client and Business
Standards Committee.
‰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 committees. This committee is co-chaired by the
deputy head of Compliance and the co-head of Fixed
Income, Currency and Commodities Sales, who are
appointed as co-chairs by the chair of the Firmwide Client
and Business Standards Committee.
‰Firmwide Reputational Risk Committee. The
Firmwide Reputational Risk Committee is responsible for
assessing reputational risks arising from transactions that
have been identified as presenting heightened
reputational risk, and other situations where the facts and
circumstances warrant escalation. This committee is co-
chaired by the head of Compliance and the head of
Conflicts, who are appointed as co-chairs by the
Firmwide Client and Business Standards Committee.
Firmwide Risk Committee. The Firmwide Risk
Committee is globally responsible for the ongoing
monitoring and management of our financial risks.
Through both direct and delegated authority, the Firmwide
Risk Committee approves firmwide and business-level
limits for both market and credit risks, approves sovereign
credit risk limits, reviews results of stress tests and scenario
analyses, and provides oversight over model risk. This
committee is co-chaired by our chief financial officer and
our chief risk officer, and reports to the Management
Committee. The following are the primary committees that
report to the Firmwide Risk Committee:
‰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 co-chaired by a deputy
chief risk officer and the head of Credit Risk
Management for our Securities Division, who are
appointed as co-chairs by our chief risk 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 the head of Operational Risk
Management, who are appointed as co-chairs by our
chief risk officer.
‰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 GCLA. This committee is
co-chaired by our chief financial officer and our global
treasurer, who are appointed as co-chairs by the
Firmwide Risk Committee.
Goldman Sachs 2015 Form 10-K 87