Generic Bank Oversight and Risk Management Narrative

/ / ~~ wD | oe ie > Ta Va IN - fo _—= i E fae = A ~~ oT a y 4 “i = i io / L LJ = om NEN a = IN / RA A | ~ 7 < ( € A ~~ IN | | = 4 f 4 MmiARhR ws AN IN ET n RB aa a F a Us UB = lA ae. IN 2015. THE ‘C # IN me WV idea oF ie \» gn , il f a ~*~ red 7 I = a . ro) a | employee trainings on new values and culture. One of the largest banks signifi- cantly improved public disclosures by adopting new policies and processes on ethics, and publicly committing to high-quality prac- tices to ensure financial stability and economic opportunity.” At the core of these efforts was the goal to be client-oriented, with accountability to stakeholders and regulators alike. It was in the areas of risk man- agement and board oversight that banks made the most visible changes. They created risk com- mittees at the board level and implemented company-wide risk management programs. For ex- ample, we saw how a leading bank in the U.S. also established a new position of Chief Risk Officer reporting to the board and tasked with ensuring that incentive pro- grams in the organization do not encourage excessive or unneces- sary risk-taking.” One of the largest banks also showed corporate leadership by publicly acknowledging responsi- bility for unethical practices and recognizing past mistakes.” They shifted their focus to identify and monitor “material risk-tak- ing” in their organization and increased managerial oversight. Other banks publicly committed to seeking responsible business growth and to conduct their busi- ness in a more transparent way.” ACTIVE STEWARDSHIP IN FINANCIAL SERVICES 4 HOUSE_OVERSIGHT_012075