Annual Report & Accounts 2009 - Anglo Irish Bank

The Board approves the overall Group strategy and is responsible for approving the Group's risk appetite. The first Risk Appetite
Statement was approved by the Board on 26 November 2009. The Risk and Compliance Committee of the Board has the
ultimate oversight role on behalf of the Board. The key responsibilities of the committee are as follows:
▪ Review and oversight of the risk and compliance profile of the Group within the context of the Board determined risk
appetite;
▪ Making recommendations to the Board concerning the Group’s risk appetite and particular risk or compliance
management practices of concern to the committee;
▪ Review and oversight of management’s plans for mitigation of the material risks faced by the various business units of the
Group; and
▪ Oversight of the implementation and review of risk management and internal compliance and control systems throughout
the Group.
The Board delegates its monitoring and control responsibilities to the Credit Committees for credit risk (including banking and
treasury credit risk) and to the Group Asset and Liability Committee ('ALCO') for market risk and liquidity and funding risk.
These committees comprise senior management from throughout the Group and are supported by a dedicated Group Risk
Management function, which is headed by a Group Chief Risk Officer ('CRO').
The CRO reports directly to the Group Chief Executive. The CRO was an external appointment and joined the Bank on
2 November 2009. A further enhancement to the structure during the period was the separation of the CRO and Chief Financial
Officer ('CFO') roles. In addition to the appointment of an external candidate to the role of CRO, the Bank has recently
appointed a new external CFO.
The Audit Committee’s role in the risk management framework includes ensuring Group compliance with regulatory, prudential
and financial reporting responsibilities. It also reports to the Board on the effectiveness of both financial and non-financial
control processes operating throughout the Group. The committee is supported by Group Finance and Group Internal Audit,
which are central control functions independent of the business units. Group Internal Audit provides independent, objective
assurance as to whether the Group’s risk management and control framework is appropriate and functioning effectively.
Management of risk is the responsibility of staff at all levels. However, primary responsibility for managing risk and for ensuring
adequate controls are in place lies with the Group Risk Management function. The Group Risk Management function is
responsible for:
▪ Supporting the senior management team and the Board in setting the Group’s risk appetite and policies;
▪ Supporting management in business decision making through independent and objective challenge to business unit
management of risk and exposures in line with agreed risk appetites;
▪ Developing and communicating risk management policies, practices, appetites and accountabilities; and
▪ Analysing, monitoring and reporting material risk management information across all risk types and geographies to
present an aggregated view of the Group’s risk appetite to the senior management team and the Risk and Compliance
Committee.
During the second period of 2009 the Group Risk Management function initiated general improvements as part of an ongoing
process review. Some examples include:
▪ Enhancement of Asset Quality teams;
▪ Establishment of a new Quality Assurance team; and
▪ Establishment of a Risk Operations team.
Further enhancements will be made in 2010.
Anglo Irish Bank
Annual Report & Accounts 2009
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