Risk-management and risk-committee requirements for foreign banking organizations with combined U.S. assets of $100 billion or more.

CFR · 2024-01-01 · US · Title 12

(a) (2) (i) Policies and procedures establishing risk-management governance, risk-management procedures, and risk-control infrastructure for the combined U.S. operations of the foreign banking organization; and (ii) Processes and systems for implementing and monitoring compliance with such policies and procedures, including: (A) Processes and systems for identifying and reporting risks and risk-management deficiencies, including regarding emerging risks, on a combined U.S. operations basis and ensuring effective and timely implementation of actions to address emerging risks and risk-management deficiencies; (B) Processes and systems for establishing managerial and employee responsibility for risk management of the combined U.S. operations; (C) Processes and systems for ensuring the independence of the risk-management function of the combined U.S. operations; and (D) Processes and systems to integrate risk management and associated controls with management goals and the compensation structure of the combined U.S. operations. (3) (ii) A foreign banking organization that conducts its operations through U.S. branches or U.S. agencies (in addition to through its U.S. intermediate holding company, if any) may maintain its U.S. risk committee either: (A) As a committee of the global board of directors (or equivalent thereof), on a standalone basis or as a joint committee with its enterprise-wide risk committee (or equivalent thereof); or (B) As a committee of the board of directors

official document · source cfr-2024 · id 12:§ 252.155