Risk management.

CFR · 2024-01-01 · US · Title 12

(a) (2) (3) (i) Risk limitations appropriate to each business line of the regulated entity; (ii) Appropriate policies and procedures relating to risk management governance, risk oversight infrastructure, and processes and systems for identifying and reporting risks, including emerging risks; (iii) Provisions for monitoring compliance with the regulated entity's risk limit structure and policies relating to risk management governance, risk oversight, and effective and timely implementation of corrective actions; and (iv) Provisions specifying management's authority and independence to carry out risk management responsibilities, and the integration of risk management with management's goals and compensation structure. (b) (1) (i) Be chaired by a director not serving in a management capacity of the regulated entity; (ii) Have at least one member with risk management experience that is commensurate with the regulated entity's capital structure, risk appetite, complexity, activities, size, and other appropriate risk-related factors; (iii) Have committee members that have, or that will acquire within a reasonable time after being elected to the committee, a practical understanding of risk management principles and practices relevant to the regulated entity; (iv) Fully document and maintain records of its meetings, including its risk management decisions and recommendations; and (v) Report directly to the board and not as part of, or combined with, another committee. (2) (i) Periodi

official document · source cfr-2024 · id 12:§ 1239.11