Major banks usually have two risk management committees, the Credit Risk Committee and the bank 's Asset and Liability Management Committee.
The credit department is responsible for implementing the policy developed by the credit risk committee.
The Operations Department, Securities, International Credit and Settlement, Banking Analysis and Marketing Departments are responsible for the implementation of the policy developed by the Asset and Liability Risk Management Committee.
Credit Risk Committee typically includes:
Head of Bank (Chairman of Committee), Heads of Credit and Operations Department of Accounting, Chief Economist or Head of Research Department,
Head of Credit Risk Analysis, two or more other top-level bank managers.
The bank 's Asset and Liability Management Committee includes:
Head of the bank (chairman of the committee), heads of operations and credit departments, chief economist or head of research department, heads of financial control and accounting service, several other top-level managers.
These banking committees should:
- Create bank risk management instructions inside.
- Define risk management policy objectives and communicate them to the bank team.
- Delegate the authority to implement this policy and control the bank 's departments and individual employees if necessary.
- Develop limits and standards for volumes, areas, risk types, assessment and management.