P.
13
2018 Pillar 3 Disclosures
Risk Management
Supporting structure for the Board of Directors
In addition to the Board and its aforementioned-delegated committees, the following also play
a key role in governance: policy design, risk monitoring and the following committees in which
senior management participates.
Assets and Liabilities Committee (ALCO)
By appointment of the Board of Directors, this is the bank’s body responsible for upholding
senior management’s participation in monitoring and controlling the financial risks and
developing and implementing risk policies that ensure the established risk profile is
maintained. The ALCO regularly reports to the Board of Directors on the bank’s investments
and the performance thereof, and on operations it has authorised on the basis of the powers
delegated to it.
The ALCO has the following structure of support committees:
•
Financial Risk Committee.
Deciding on proposed operations and credit risk limits that
fall within powers delegated to it by the ALCO and submitting to the ALCO those operations
that exceed its authorisation limits. Ensuring that the bank’s exposure to risk is within
the tolerance levels set by the Board of Directors and the ALC. Continuously adapting
(i) risk management procedures to the increasing sophistication of the financial market
and aligning them with capital requirements at each moment in time; as well as (ii)
assessment methodologies to ensure they are in line with best market practice and the
needs of the bank.
•
Financial Department Investments Committee.
This department runs the ordinary
management of the Financial Department, especially the Trading Division’s activity, in
accordance with the policies approved by the Board of Directors and the guidelines issued by
the ALCO, raising the information needed to make decisions.
•
New Financial Products Committee.
It assesses and approves, as required, new financial
products to be used by the bank’s Trading Room.
•
Liquidity Committee.
This committee assesses the liquidity situation of the bank and the
markets, and, in the event of a liquidity crisis, it defines the measures to be taken and
coordinates actions.
Compliance and Operational Risk Committee
This is the bank’s body that upholds senior management’s participation in the development
and implementation of risk policies and in the management, monitoring and control of non-
financial risks (operational and reputational risks). The functions that is has been delegated
are covered in its Regulations.
To carry out its tasks, this committee has a support structure in place to which to delegate
part of its powers: The Anti-Money Laundering and Terrorist Financing Committee, the Tax
Committee and the Security and Technological Risk Committee.
2.2.3
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