IBRC annual report for 2011 - Irish Bank Resolution Corporation ...

Irish Bank Resolution Corporation LimitedAnnual Report & Accounts 2011Reporting and measurementThe Head of Group Compliance and Operational Risk reports to the CRO, with oversight by the Risk and ComplianceCommittee.Group Compliance and Operational Risk prepares reports for each Risk and Compliance Committee meeting. The reportincorporates metrics in relation to compliance such as volumes and trends in complaints and information on the extent ofcontact with regulatory authorities.Risk mitigationNon-compliance with regulatory requirements may result in actions by regulators, including sanctions. Such events in turncould have an adverse impact on the Group’s results, its business and reputation.In order to minimise risk of non-compliance, the function has adopted specific mitigant policies in relation to such matters asanti-money laundering and data protection.51. Financial instrumentsThe Group uses financial instruments, including derivatives, in the normal course of its business. Interest income is principallyderived from the Group’s promissory note holdings and from its loan book. The Group sources funding from central banksthrough both open market operations and other special funding facilities. In prior years the Group has also raised funds via thecapital markets by issuing debt securities and capital instruments. These liabilities are at both fixed and variable interest ratesand at various maturities from short to long term.The accounting policies in note 1 describe how different categories of financial instruments are measured, and how incomeand expenses, including fair value gains and losses, are recognised. The following table analyses the carrying amounts of theGroup's financial assets and liabilities by measurement basis and by statement of financial position presentation.133