AIG 2010 Annual Report Download - page 160

18FEB201118585666
American International Group, Inc., and Subsidiaries
Transactional & Policy Setting Business Unit
Group Risk Committee
Chairman: EVP – Finance, Risk &
Investments
• Chartis Risk & Capital Committee
• SunAmerica Risk & Capital Committee
• UGC Risk Committee
• Regional Pricing, Product and
Transaction Review Committees
• Other Risk & Capital Committees
(including ALCO)
• Credit Risk, Cross-Border and Country
Rating Committees
• CSFT Committee
• GRE & AIG FP Steering Committees
• Global Pricing Committee
• Global Yield & Currency Committee
• Derivatives Committee
• The GRC is responsible for ensuring that AIG has a solid foundation for risk management in application of
strategic risk tolerance limits. The mandate of the GRC is to ensure that AIG’s financial strength is
protected and that business decisions are governed by overarching consideration of maximizing intrinsic
value and risk-adjusted return.
• The CRC is responsible for approving credit risk policies and procedures for use throughout AIG and
delegating credit authority to business unit credit officers and select business unit managers. In addition, the
CRC approves transactions and limits that exceed delegated authorities and reviews all credit concentration
risks.
• The LRC is responsible for liquidity policy and implementation at AIG Parent and exercises oversight and
control of liquidity policies at each AIG entity. See Capital Resources and Liquidity herein.
• The CSFTC has the authority and responsibility to review and approve any proposed CSFT, defined as any
AIG transaction or product that may involve a heightened legal, regulatory, accounting or reputational risk
that is developed, marketed or proposed by AIG or a third-party. The CSFTC provides guidance to and
monitors the activities of transaction review committees (TRCs) which have been established in all major
business units. TRCs have the responsibility to identify, review and refer CSFTs to the CSFTC.
• The Global Pricing Committee provides oversight of AIG’s pricing valuation practices and processes and has
delegated operational responsibility to the Regional Pricing Committees to implement and monitor these
practices within the underlying businesses of each respective region.
• AIG has steering committees overseeing the wind-down of the real estate and Capital Markets portfolios.
Derivatives risk, foreign currency exposures and operational risk are monitored and addressed by various
committees and working groups.
AIG has also instituted a monthly business review process whereby senior corporate and business management
discuss operating performance and review issues including risks affecting the business. AIG continues to develop
144 AIG 2010 Form 10-K