Wells Fargo 2015 Annual Report Download - page 62

Risk Management (continued)
Table 16: Key Risk Responsibilities of Board Committees
Board of Directors
Annually approves overall enterprise risk appetite statement
Board Committees
Risk Committee
Oversight includes:
• Enterprise-wide risk
management
framework and
structure, including
through approval of the
risk management
framework which
outlines the Company’s
approach to risk
management and the
policies, processes and
governance structures
necessary to execute
the risk management
program
• Risk functional
framework and
oversight policies,
which outline roles and
responsibilities for
managing key risk
types and the most
significant cross-
functional risk areas,
including counterparty
credit risk
• Corporate Risk
function, including
performance of the
Chief Risk Officer
• Risk coverage
statement
• Aggregate enterprise-
wide risk profile and
alignment of risk profile
with Company strategy,
objectives, and risk
appetite
Audit & Examination
Committee
Oversight includes:
• Internal control over
financial reporting
• Disclosure framework
for financial and risk
reports prepared for
the Board,
management and
bank regulatory
agencies
• External auditor
performance
• Internal audit
function, including
performance of the
Chief Auditor
• Operational risk,
compliance with legal
and regulatory
requirements,
financial crimes risk
(BSA/AML),
information security
risk (including cyber),
and technology risk,
including through
approval (and
recommendation to
the Risk Committee)
of the relevant
functional framework
and oversight policies
• Ethics, business
conduct, and conflicts
of interest program
• Resolution planning
Credit Committee
Oversight includes:
• Credit risk, including
through approval (and
recommendation to
the Risk Committee)
of the credit risk
functional framework
and oversight policy
• Allowance for credit
losses, including
governance and
methodology
• Adherence to
enterprise credit risk
appetite metrics and
concentration limits
• Credit quality plan
• Compliance with
credit risk framework,
policies and
underwriting
standards
• Credit stress testing
framework and
results (including
credit modeling
issues)
• Risk Asset Review
organization,
resources, and
structure, and its
examinations of credit
portfolios, processes,
and practices
Corporate
Responsibility
Committee
Oversight includes:
• Reputation risk,
including through
approval (and
recommendation to
the Risk Committee)
of the reputational
risk functional
framework and
oversight policy
• Customer service
and complaint
matters, including
related to the
Company’s culture
and its team
members’ focus on
serving customers
• Fair and responsible
mortgage and other
consumer lending
reputational risks
• Social responsibility
risks, including
political and
environmental risks
Human Resources
Committee
Oversight includes:
• Overall incentive
compensation strategy
and incentive
compensation practices
• Compensation risk
management
• Talent management and
succession planning
Governance & Nominating
Committee
Oversight includes:
• Corporate governance
compliance
• Board and committee
performance
• Risk appetite
statement, including
changes in risk
appetite, and
adherence to risk limits
• Risks associated with
acquisitions and
significant new
business or strategic
initiatives
• Liquidity and funding
risks, emerging risk,
strategic risk, and other
selected risk topics and
enterprise-wide risk
issues, including model
risk
• Volcker compliance
program
• Through joint meetings
with the Audit &
Examination
Committee, information
security risk (including
cyber) and technology
risk
Finance Committee
Oversight includes:
• Interest rate risk,
including the MSR
• Market risk, including
trading and derivative
activities
• Approval (and
recommendation to the
Risk Committee) of the
interest rate risk and
market risk functional
framework and
oversight policies
• Investment risk,
including fixed-income
and equity portfolios
• Capital position and
planning, including
capital levels relative to
budgets and forecasts
and the Company’s risk
profile, capital adequacy
assessment and
planning, and stress
testing activities
• Financial risk
management policies
used to assess and
manage market, interest
rate, liquidity and
investment risks
• Annual financial plan
• Recovery planning
Wells Fargo & Company
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