Supervisors Symposium - December 2023

Internal Use Only

Risk Management ultimately determines residual risk in banks . . .

Board and Sr. Mgmt Oversight

Policies, Procedures, and Limits

Risk Monitoring and MIS

Internal Controls

Lines of authority and responsibility for risk management and policy adherence

Must identify, measure, monitor, and control significant risks

Establish Risk Appetite

Must address all material risks

Must establish accountability and lines of authority

Key assumptions must be reasonable and documented

Must have independence and objectivity

Skills, Knowledge and experience

Reports to the Board and Senior Mgmt must be accurate, timely, and comprehensive

Must address new products/services and modifications to existing

Ensure mgmt. is capable

Must be adequately tested and reviewed

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Internal Use Only

Corporate Governance

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