Your Society

Group Risk Committee Terms of Reference

The Group Risk Committee brings together all risk information for reporting to the Board with specific responsibility for the oversight of capital resources, operational risks and risk issues more generally, including their monitoring and reporting. 

Membership

Iain Cornish, Chief Executive (Committee Chairman)
Ed Anderson, Chairman
Lynne Charlesworth, Non-executive Director
Richard Davey, Vice Chairman
David Paige, Non-executive Director
Andrew Gosling, Finance Director (Committee Vice Chairman)
Andy Caton, Corporate Development Director
Robin Churchouse, General Manager Risk & Planning
Rachel Court, General Manager HR & Customer Service

A quorum will be at least four members, one of whom must be a non-executive Director and one an executive Director.

Meetings shall be held quarterly and at such other times as required to ensure the effective and timely execution of the Committee?s responsibilities. 

Purpose and Authority

The purpose of the Committee is that of oversight, recognising that management is responsible for executing risk management policy.

Group Risk shall drive a culture of risk awareness within the Group and make appropriate recommendations to the Board on all significant risk related issues, including policy related to operational risk.

The existence of the Risk Committee ensures that all risk classes are being considered at an appropriately senior level in a consistent manner and that the Board receives periodic reporting on the risk environment and management?s actions to mitigate and manage significant risks in a manner consistent with the Group?s risk appetite.

 

The Committee is authorised by the Board to:

  • Investigate any matter within its terms of reference giving due reference to regulatory considerations.
  • Seek relevant information from appropriate employees.
  • Obtain external professional advice where it is deemed necessary.

Responsibilities

  • To review and report on the available risk capital for the Group to aid the determination of the Group?s risk appetite, including the setting of appropriate risk limits.  (Note, it is the Board?s responsibility to set the Group?s risk appetite).
  • To oversee the ICAAP process and its reporting, particularly ensuring that the Group has the right amount, type and distribution of financial resources and capital to meet the risks it might be exposed to and to meet its liabilities as they fall due.
  • To provide the Board with regular assessments of the risks facing the Group and ensure that comprehensive and accurate risk information is provided to the Board.
  • To review and recommend standards for risk management including the procedures for the identification, assessment, measurement, monitoring, reporting and mitigation of risks, including assurance that predictive risk management methods are applied as required.
  • To review and assess the adequacy of control standards and adequacy of risk management.
  • To review and recommend changes in risk governance policy, including ensuring appropriate methodologies are adopted.
  • To work alongside other risk committees and the Audit Committee to ensure that all risk issues are identified and given appropriate consideration or subject to appropriate action.
  • To consider the risk issues arising from the work of Group Internal Audit.
  • To review guidance on risk issues from the regulator and consider outputs from the regulatory ARROW process and FSA reviews/visits.
  • To consider risk reports resulting from the results of control self-assessment, KRI data, operational loss data, the High Level Risk Report, ad hoc reviews and results of fraud investigations.
  • To oversee the activities of the Group Risk function.

Meeting Agenda

Risk Committee meetings must consider the following standing items at its quarterly meetings.  Other items are at the discretion of the Committee and/or in relation to the execution of the responsibilities outlined above.

  • Minutes of prior meetings and action points
  • High level risks report and changes in risk profile
  • Significant control and regulatory issues
  • KRI trends and loss analysis reporting
  • Risk acceptance information
  • Reports from the Money Laundering Reporting Officer (MLRO)
  • ICAAP reporting on capital adequacy and remedial actions
  • Risk positions in relation to limits
  • Summary credit and market risk position information

Group Risk will collate information for committee meetings and circulate to members prior to the meeting allowing sufficient time for review.


Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, credit cards, loans, mortgages and more.

Get in touch with us:

Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).