A tone set from the top down
The foundation of our risk culture begins with an appropriate tone from the top. This tone is essential and encompasses not only what senior management says, but what it does. Senior management, including the Board, demonstrate their commitment to and support for risk management activities and incentives that encourage a strong risk culture throughout the bank. As a whole and at the committee level, the Board has an active role in overseeing the management of our risks. Board members regularly review our credit, liquidity, operations, compliance, price, interest, strategic, reputational, and the associated risks.
The bank’s senior management has effectively demonstrated its support for risk management activities by:
- Creating and investing in a robust and comprehensive risk management framework
- Appropriately staffing the program with experienced, qualified personnel
- Providing ongoing training to increase knowledge and capabilities where applicable
- Allocating significant amounts of management time discussing risk and mitigation plans during management committee and Board meetings
- Continuously supporting the risk management program and reinforcing its requirements