Westpac Group Pillar 3 Report March 2013 - Iguana IR Sites

PILLAR 3 REPORT
CONTROLLING AND MANAGING RISK
Risk management governance structure (continued)
Executive risk
committees
Westpac Group Asset & Liability Committee (ALCO)
leads the optimisation of funding and liquidity risk-reward across the
Group;
oversees the liquidity risk management framework and key policies;
oversees the funding and liquidity risk profile and balance sheet risk
profile; and
identifies emerging funding and liquidity risks and appropriate actions to
address these.
Westpac Group Credit Risk Committee (CREDCO)
leads the optimisation of credit risk-reward across the Group;
oversees the credit risk management framework and key policies;
oversees our credit risk profile; and
identifies emerging credit risks and appropriate actions to address these.
Westpac Group Market Risk Committee (MARCO)
leads the optimisation of market risk-reward across the Group;
oversees the market risk management framework and key policies;
oversees our market risk profile; and
identifies emerging market risks and appropriate actions to address these.
Westpac Group Operational Risk & Compliance Committee (OPCO)
leads the optimisation of operational risk-reward across the Group;
oversees the operational risk management framework, the compliance
management framework and key supporting policies;
oversees our operational risk and compliance risk profiles;
oversees the reputation risk and environmental, social and governance
(ESG) risk management frameworks and key supporting policies; and
identifies emerging operational and compliance risks and appropriate
actions to address these.
Westpac Group Remuneration Oversight Committee (ROC)
responsible for ensuring that risk is embedded in all key steps in our
remuneration framework;
reviews and makes recommendations to the CEO for recommendation to
the Board Remuneration Committee (BRC) on the Group Remuneration
Policy and provides assurance that remuneration arrangements across
the Group encourage behaviour that supports Westpac’s long-term
financial soundness and the risk management framework while rewarding
individuals fairly and responsibly;
reviews and monitors the remuneration outcomes (other than for Group
Executives) for Responsible Persons (as defined in the Group’s Statutory
Officers Fit and Proper Policy), risk and financial control personnel, and
all other employees for whom a significant portion of total remuneration is
based on performance and whose activities, either individually or
collectively, may affect the financial soundness of Westpac; and
reviews and recommends to the CEO for recommendation to the BRC the
criteria and rationale for determining the total quantum of the Group
variable reward pool.
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