Risk management - Corporate Responsibility

Risk management

ANZ's Risk Management framework provides a robust structure for the identification and management of risks from the Board to business unit level.

Risk management structure
ANZ’s Board has ultimate responsibility for risk management and has established three key Committees: the Risk Committee, Audit Committee and Governance Committee. The Risk Committee assists the Board of Directors in the effective discharge of the Board’s responsibilities for business, market, credit, equity and other investment, financial, operational, liquidity, compliance and reputational risk management. The Audit Committee reviews financial reporting principles and policies, controls and procedures, and the effectiveness of Internal Audit, ANZ's internal control and risk management framework. The Governance Committee reviews the development of and approves all other corporate governance policies and principles applicable to ANZ; and ensures an appropriate Board and Committee structure is in place. The Board Committees are supported by the Chief Risk Officer (CRO) and various senior management committees focusing on credit and operational risks as well as regulatory capital, liquidity and funding. A central risk team reports to the CRO comprising credit and market risk, risk infrastructure, risk governance and a chief of staff function. Business Unit risk management committees and personnel discharge responsibilities for business, market, credit, operational, liquidity and reputation risk and compliance with regulatory obligations. View ANZ's risk management structure

Risk management structure

ANZ’s Board has ultimate responsibility for risk management and has established three key Committees: the Risk Committee, Audit Committee and Governance Committee.

The Risk Committee assists the Board of Directors in the effective discharge of the Board’s responsibilities for business, market, credit, equity and other investment, financial, operational, liquidity, compliance and reputational risk management.
The Audit Committee reviews financial reporting principles and policies, controls and procedures, and the effectiveness of Internal Audit, ANZ's internal control and risk management framework.
The Governance Committee reviews the development of and approves all other corporate governance policies and principles applicable to ANZ; and ensures an appropriate Board and Committee structure is in place.

The Board Committees are supported by the Chief Risk Officer (CRO) and various senior management committees focusing on credit and operational risks as well as regulatory capital, liquidity and funding.

A central risk team reports to the CRO comprising credit and market risk, risk infrastructure, risk governance and a chief of staff function.

Business Unit risk management committees and personnel discharge responsibilities for business, market, credit, operational, liquidity and reputation risk and compliance with regulatory obligations.

View ANZ's risk management structure

Audit
ANZ's internal audit function has responsibility for evaluating and providing advice on how to improve the effectiveness of ANZ's operations, including its risk management processes. Internal Audit reports to the Board's Risk Committee each quarter and ANZ's Chief Risk Officer attends the Audit Committee twice a year to report on the effectiveness of the risk management framework and any material issues.

Audit

ANZ's internal audit function has responsibility for evaluating and providing advice on how to improve the effectiveness of ANZ's operations, including its risk management processes.

Internal Audit reports to the Board's Risk Committee each quarter and ANZ's Chief Risk Officer attends the Audit Committee twice a year to report on the effectiveness of the risk management framework and any material issues.

Reputation risk
ANZ has a clear framework for managing reputation, social and environmental risks. Our Corporate Responsibility Committee monitors current and emerging corporate responsibility risks and opportunities and reports to ANZ's Management Board on response strategies. The Reputation Risk Committee is chaired by the Chief Risk Officer and is responsible for: understanding and assessing the impacts of current and emerging environmental, social, business and regulatory risks and exposures on ANZ's reputation, and approving appropriate strategies to manage and mitigate those reputation risks overseeing the operation of New Product Committees to ensure that reputation risk issues are considered appropriately mandating the development and implementation of appropriate policies and guidelines across ANZ for managing reputation risks and reviewing and considering other strategies to ensure reputation risk management is incorporated into decision making. We have established decision-making frameworks and policies to ensure our business decisions are guided by sound social and environmental standards and take into account reputation risk. Business unit committees and risk functions have responsibility for identifying and managing the implications of their business on ANZ's reputation. For instance, the Asia Pacific Reputation Risk Committee oversees the development of strategies and policies to assist reputation risk management in our Asia Pacific operations and provides senior management guidance on controversial transactions.

Reputation risk

ANZ has a clear framework for managing reputation, social and environmental risks.

Our Corporate Responsibility Committee monitors current and emerging corporate responsibility risks and opportunities and reports to ANZ's Management Board on response strategies.

The Reputation Risk Committee is chaired by the Chief Risk Officer and is responsible for:

understanding and assessing the impacts of current and emerging environmental, social, business and regulatory risks and exposures on ANZ's reputation, and approving appropriate strategies to manage and mitigate those reputation risks
overseeing the operation of New Product Committees to ensure that reputation risk issues are considered appropriately
mandating the development and implementation of appropriate policies and guidelines across ANZ for managing reputation risks and reviewing and considering other strategies to ensure reputation risk management is incorporated into decision making.

We have established decision-making frameworks and policies to ensure our business decisions are guided by sound social and environmental standards and take into account reputation risk.

Business unit committees and risk functions have responsibility for identifying and managing the implications of their business on ANZ's reputation. For instance, the Asia Pacific Reputation Risk Committee oversees the development of strategies and policies to assist reputation risk management in our Asia Pacific operations and provides senior management guidance on controversial transactions.