Large Bank Supervision Forum eBook

Internal Use Only Large Bank expectations (>$100Bn in assets) • Independent risk management (IRM) function • IRM is the 2 nd Line of Defense • 1 st Line owns the risks and is responsible for identifying and managing the risks in their activities • 3 rd Line is internal audit • Appropriate stature of Chief Risk Officer (CRO) and key risk executives • CRO reporting line to Board Risk Committee • Independent risk committees

• Evidence of Review and Challenge • Risk Expert on Board of Directors • Guidance?

Internal Use Only

Comprehensive Risk Management Framework

Identification

Capture

Measurement

Monitoring

Aggregation

Assessment

Reporting