Freddie Mac 2015 Annual Report Download - page 88

Management's Discussion and Analysis Risk Management | Overview
Freddie Mac 2015 Form 10-K 86
RISK MANAGEMENT GOVERNANCE STRUCTURE
We manage risk using a governance structure that includes enterprise-wide oversight by the Board and
its committees, CERO, CCO, and our corporate Enterprise Risk Committee ("ERC").
The discussion and diagram below present the structure of our three-lines-of-defense risk management
framework and our governance structure.
We have made considerable enhancements to our risk management framework in recent years,
including:
• Revising our integrated enterprise risk management framework to enable us to place more focus on
high risk business processes and activities; and
• Leveraging our enterprise risk management framework to begin implementation of a redesigned,
enhanced, and still maturing three-lines-of-defense methodology.
We use this still maturing three-lines-of-defense methodology to both strengthen risk ownership in our
business units and add clarity to risk management roles and responsibilities. Our framework focuses on
balancing ownership of risk by our business units with corporate oversight and independent assurance of
the design and effectiveness of our risk management activities. For more information on the role of the
Board and its committees, see "Directors, Corporate Governance, and Executive Officers - Board and
Committee Information."