Discover 2015 Annual Report Download - page 30

-14-
Audit Committee of our Board of Directors
Our Audit Committee is responsible for the following related to the risk management framework: (i) discussing
policies with respect to risk assessment and management, (ii) receiving and reviewing reports from our CRO and other
members of management as the Committee deems appropriate on the guidelines and policies for assessing and
managing our exposure to risks, the corporation’s major financial risk exposures and the steps management has taken
to monitor and control such exposures, and (iii) sharing information and liaising with the Risk Oversight Committee as
necessary or desirable to help ensure that the committees have received the information necessary to permit them to
fulfill their duties and responsibilities with respect to oversight of risk management matters.
Compensation and Leadership Development Committee of our Board of Directors
Our Compensation and Leadership Development Committee is responsible for overseeing risk management
associated with the Company's compensation practices. The Committee receives reporting regarding the Company's
compensation practices and evaluates whether these practices encourage excessive risk-taking. As a part of its reviews,
the Committee obtains the input of our CRO and takes into account risk outcomes.
Risk Committee
Our Risk Committee is an executive management-level committee that establishes a comprehensive global risk
management program which includes (i) providing a regular forum for representatives of our different functional groups
to identify and discuss key risk issues and to recommend to senior management actions that should be taken to manage
the level of risk taken by the business lines, (ii) establishing and overseeing an enterprise-wide approach to risk
management through the development of our Enterprise Risk Management Policy and the associated oversight
framework for the identification, measurement, monitoring, management and reporting of enterprise risk, (iii)
communicating our risk appetite and philosophy, including establishing limits and thresholds for managing enterprise-
wide risks, and (iv) reviewing, on a periodic basis, our aggregate enterprise-wide risk exposures and the effectiveness
of risk identification, measurement, monitoring, management and reporting policies and procedures, and related
controls within the lines of business.
Our Risk Committee has formed and designated a number of committees to assist it in carrying out its
responsibilities. These committees, made up of representatives from senior levels of management, escalate issues to our
Risk Committee as guided by escalation thresholds. These risk management committees include the Discover Bank Credit
Committee, Asset/Liability Management Committees (Discover Financial Services and Discover Bank), the Counterparty
Credit Committee, the New Initiatives Committee, the Operational Risk Committee, the Capital Planning Committee and
the Compliance Committee.
Chief Executive Officer (“CEO”)
The CEO is ultimately responsible for risk management within our Company. In that capacity, the CEO
establishes a risk management culture throughout the Company and ensures that businesses operate in accordance with
this risk culture.
Business Unit Heads
Our business unit heads are responsible for managing risk associated with pursuit of their strategic, financial and
other business objectives. Business unit heads are responsible for (i) complying with all risk limits and risk policies, (ii)
identifying risks and implementing appropriate controls, (iii) explicitly considering risk when developing strategic plans,
budgets and new products, (iv) implementing appropriate controls when pursuing business strategies and objectives, (v)
ensuring business units implement business unit processes, controls and monitoring to support corporate model risk
management standards such as documentation standards and reporting standards, (vi) coordinating with CRM to
produce relevant, sufficient, accurate and timely risk reporting that is consistent with the processes and methodology
established by CRM, (vii) ensuring sufficient financial resources and qualified personnel are deployed to control the risks
inherent in the business activities, and (viii) designating, in consultation with the CRO, a Business Risk Officer to assist
with the above and to perform the specific duties described below.
Business Risk Officers work in conjunction with the business unit head to implement a business risk management
program that satisfies business unit needs and adheres to corporate policy, standards and risk architecture.