Annual report and accounts 2009 (PDF) - Coventry Building Society

Remuneration CommitteeConsisting of the non-executive directors only and chairedby Bridget Blow, independent non-executive director, thiscommittee approves the level of remuneration for theexecutive directors and senior management.The report on directors’ remuneration, prepared by thecommittee, can be found on pages 25 to 26.Audit CommitteeThis committee comprises four independent directors: IanPickering (Chairman of the Audit Committee), Bridget Blow,Roger Burnell and Ian Geden.The committee considers audit matters and other risksapplying to the Society. These include compliance mattersunder the Financial Services and Markets Act 2000, internalcontrols, the work of internal audit, the appointment andre-appointment of the external auditors, financial reportingand other relevant prudential requirements.The external auditors, the Society’s Chief Executive, FinanceDirector, Secretary and Solicitor, Head of Risk, ChiefInternal Auditor and also certain senior managers (ifrequired) attend Audit Committee meetings. In addition, theSociety’s external auditors are provided with the opportunityto meet the members of the committee in private session.The committee undertakes an annual evaluation to assessthe independence and objectivity of the external auditorsand the effectiveness of the audit process, taking intoconsideration relevant professional and regulatoryrequirements. The outcomes of this evaluation feed into thecommittee’s recommendation to the board on the reappointmentof the external auditors. The final decision onthe recommendation is, of course, reserved for the board.SENIOR MANAGEMENT COMMITTEESSenior Management CommitteeChaired by the Chief Executive and comprised of executivedirectors and senior management.Committee members work closely day-to-day and thecommittee meets formally on a weekly basis to oversee theoperational and business performance of the Society.Risk Management CommitteeChaired by the Finance Director and comprised of theexecutive directors and senior management, with nonexecutivedirectors in attendance by rotation and theexternal auditors in attendance by invitation.The committee meets monthly (with additional meetings asrequired) and ensures that risk is being managed efficientlyacross the Society, in accordance with the corporate plan.The minutes of the committee are presented to the fullboard.The Society also has a number of sub-committees thatreport to the Risk Management Committee. The details ofthese committees are as follows:Asset and Liability Committee (ALCO)Chaired by the Finance Director and comprised of executivedirectors and senior management. The committeeoversees the management of the Society’s asset andliability management strategy with the objective of achievingthe corporate plan.Credit Risk and Lending CommitteeChaired by the Deputy Finance Director and comprised ofsenior management. The committee meets twice monthlyand monitors the risks associated with lending policy, creditsystems and credit processes.Operational Risk and Compliance CommitteeChaired by the Chief Operating Officer and comprised ofsenior management. The committee monitors operationalrisk, financial crime, regulatory compliance and businesscontinuity in the Society.Rating System CommitteeChaired by the Finance Director and comprised of executivedirectors and senior management. The committeemonitors the performance of the Society’s Basel II creditrisk rating system.Security and Safety CommitteeChaired by the Sales and Marketing Director and comprisedof executive directors and senior management. Thecommittee oversees security and health and safety issuesas they apply to staff and customers.GOING CONCERNIn preparing the financial statements the directors mustsatisfy themselves that it is reasonable for them toconclude it is appropriate to adopt the going concern basis.The Society meets its day-to-day liquidity requirementsthrough managing both its retail and wholesale fundingsources and is required to maintain a sufficient buffer overregulatory capital requirements in order to continue to beauthorised to carry on its business.17