Wells Fargo 2014 Annual Report Download - page 11

We believe that to continue our success and meet
the heightened expectations of our key stakeholders,
we must excel in all types of risk management...
Better risk management also will result in better
customerexperiences.
semiannual application process.
Our hope is that the most promising
technologies we invest in will one day
reach WellsFargo customers.
Making diversity and inclusion
part of our DNA
As a nation, we are becoming more
diverse, so much so that the U.S.
Census Bureau projects that by2043
we will be a nation without an ethnic
or racial majority. This is why it is
critical that our team members reflect
the diversity in our communities, so
we can better understand and serve
the needs of our customers.
Internally, we nurture our diverse
and inclusive culture in many ways.
Ipersonally chair our Diversity and
Inclusion Council and have seen
firsthand the advantages of having
a culture that respects and values
team members for who they are and
the creativity and innovation that
come from multiple perspectives
andexperiences.
Our multicultural focus starts at
the top. It is no coincidence that we
have one of the most diverse boards
of directors in the industry: Of our
15directors, 10 are women and/or
people of color. I also hold each of my
direct reports accountable through
a “diversity scorecard” that Ireview
with them to track our progress.
We oer comprehensive
diversity and inclusion education
for team members and sponsor
10Team Member Networks
that provide professional and
leadership development, mentoring,
and community involvement
opportunities.
Signs of progress include the fact
that six of our top female leaders
were named to American Banker’s
2014 list of “Most Powerful Women.”
We also received recognition as a
Best Place to Work for LGBT Equality,
earning a perfect score of 100 from the
Human Rights Campaign—the 12th
consecutive year we have received
that honor. Additionally, we were
recognized as the 8th Top Company for
Veterans by DiversityInc, the 9th Best
Company for Diversity by Hispanic
Business, and the 18th Best Company
for Latinas by LATINA Style.
Leading the way in risk and
operational excellence
WellsFargo has always been strong
in risk management, particularly
credit risk. Our goal is to build on our
strengths and set the global standard
for risk management excellence
among all financial institutions.
We want to incorporate robust risk
management practices and principles
into every aspect of our culture.
We believe that to continue our
success and meet the heightened
expectations of our key stakeholders,
we must excel in all types of risk
management, including credit, interest
rate, market, liquidity, operational,
and reputational risk. This also
includes cybersecurity, in which we
are making significant investments
to protect our customers’ information
and assets and to safeguard our
infrastructure and systems.
This doesn’t mean that we won’t
take risks; in fact, as a bank we are in
the business of managing risks. But we
will attempt to do so prudently, only
taking risks that we fully understand
and avoiding shortcuts for profits at
the expense of our culture.
We manage risk in three ways:
Our business lines have primary
responsibility for risk and act as our
“first line of defense.” Our enterprise
Corporate Risk team provides an
independent review of our risks as
a “second line of defense.” And our
independent Corporate Audit team
has the final say as a “third line
ofdefense.”
Most important, though, is that
team members understand they
have a responsibility to raise their
hands when they see activities that
could put our company at risk or are
inconsistent with our culture. This
shared responsibility is reflected
even in how we pay our people. We
take great care to align our incentives
with our risk management objectives.
A new board member
On Jan.1, 2015, we welcomed
Elizabeth A. “Betsy” Duke to our board
of directors. Betsy is a former member
of the Board of Governors of the
Federal Reserve System and has more
than 30years of banking and risk
management experience. She brings
exceptional industry knowledge and
a strong combination of leadership
and risk management experience to
our company. Betsy serves on the
board’s Risk Committee.
I want to close by thanking our
265,000 team members for our success
in2014. They bring our culture to life.
And if there is one job I must do for
them and our customers, it is to be
the keeper of our company’s culture.
Thatwork doesn’t end with this letter,
nor should it. 2015 will be another
year tonurture and invest in the
customer-focused culture that drives
our success and our future.
At WellsFargo, culture counts!
John G. Stumpf
Chairman, President and Chief Executive Ocer
WellsFargo & Company
February1, 2015
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