Comerica 2008 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2008 Comerica annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 155

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155

In addition, internal audit and financial staff monitors and assesses the overall effectiveness of the system of
internal controls on an ongoing basis. Internal Audit reports the results of reviews on the controls and systems to
management and the Audit Committee of the Board. The internal audit staff independently supports the Audit
Committee oversight process. The Audit Committee serves as an independent extension of the Board.
COMPLIANCE RISK
Compliance risk represents the risk of regulatory sanctions, reputational impact or financial loss resulting
from its failure to comply with regulations and standards of good banking practice. Activities which may expose
the Corporation to compliance risk include, but are not limited to, those dealing with the prevention of money
laundering, privacy and data protection, community reinvestment initiatives, fair lending challenges resulting
from the Corporation’s expansion of its banking center network and employment and tax matters.
The Enterprise-Wide Compliance Committee, comprised of senior business unit managers, as well as,
managers responsible for compliance, audit and overall risk, oversees compliance risk. This enterprise-wide
approach provides a consistent view of compliance across the organization. The Enterprise-Wide Compliance
Committee also ensures that appropriate actions are implemented in business units to mitigate risk to an
acceptable level.
BUSINESS RISK
Business risk represents the risk of loss due to impairment of reputation, failure to fully develop and execute
business plans, failure to assess current and new opportunities in business, markets and products, and any other
event not identified in the defined risk categories of credit, market, operational or compliance risks. Mitigation
of the various risk elements that represent business risk is achieved through initiatives to help the Corporation
better understand and report on the various risks. Wherever quantifiable, the Corporation intends to use
situational analysis and other testing techniques to appreciate the scope and extent of these risks.
60