Morgan Stanley 2014 Annual Report Download - page 128

Morgan Stanley Board
Risk
Committee
Audit
Committee
Operations &
Technology
Committee
Board and Boar
d
Committees
CCAR/RRP
Committee
Strategic
Transactions
Committee
Firm Risk
Committee
Governance
Process Review
Subcommittee
Management-
Level
Committees
Firm Credit Risk
Committee
Asset/Liability
Management
Committee
Global
Compliance
Committee
Franchise
Committee
Operational Risk
Oversight
Committee
Technology
Governance
Committee
Divisional Risk
Committees
Global Legal
Entity Oversight
and Governance
Committee
Commitment &
Underwriting
Committees
FHC Governance
Committee
Culture, Values and
Conduct Committee
Morgan Stanley Board of Directors. The Board has oversight for the Company’s ERM framework is
responsible for helping to ensure that the Company’s risks are managed in a sound manner. The Board has
authorized the committees within the ERM framework to help facilitate its risk oversight responsibilities. As set
forth in the Company’s Corporate Governance Policies, the Board also oversees, and receives reports on, the
Company’s practices and procedures relating to culture, values and conduct.
Risk Committee of the Board. The BRC is composed of non-management directors. The BRC is responsible
for assisting the Board in the oversight of the Company’s global ERM framework; the major risk exposures of
the Company, including market, credit, operational, liquidity and funding, franchise and reputational risk; the
Company’s risk appetite statement, including risk limits and tolerances; risk management and risk assessment
guidelines; and the performance of the Chief Risk Officer. The BRC reports to the entire Board on a regular basis
and the entire Board attends quarterly BRC meetings.
Audit Committee of the Board. The BAC is composed of independent directors. The BAC is responsible for
oversight of the integrity of the Company’s consolidated financial statements, the Company’s compliance with
legal and regulatory requirements, the Company’s system of internal controls, the qualifications and
independence of the Company’s independent auditor, and the performance of the Company’s internal and
independent auditors. In addition, the BAC assists the Board and the BRC in its oversight of certain aspects of
risk management, including review of the major legal and compliance risk exposures of the Company and the
steps management has taken to monitor and control such exposures, as well as guidelines and policies that govern
the process for risk assessment and risk management. The BAC reports to the entire Board, including the BRC,
on a regular basis.
Operations and Technology Committee of the Board. The BOTC is composed of non-management directors.
The BOTC is responsible for reviewing the major operations and technology risk exposures of the Company,
including cybersecurity risk, and the steps management has taken to monitor and control such exposures.
Additionally, the BOTC is responsible for assisting the Board in its oversight of the Company’s operations and
technology strategy, including significant investments in support of such strategy. The BOTC is also responsible
for the review and approval of operations and technology policies, as well as the review of the Company’s risk
management and risk assessment guidelines and policies regarding operations and technology risk. The BOTC
reports to the entire Board, including the BRC, on a regular basis.
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