The Board Risk Committee reports to the Board of Directors. The Board Risk Committee Terms of Reference define its purpose and responsibilities, how it is formed, how often it convenes and how it is assessed.
Role and responsibilities
The Board Risk Committee assists the Board of Directors in risk management issues.
Risk management strategy and risk appetite
The Board Risk Committee ensures that:
- The risk management strategy and the risk appetite of Eurobank Holdings have been defined correctly, in line with the Eurobank Holdings business plan. It also ensures that the risk appetite definition is based on qualitative and quantitative criteria and the tolerances of all relevant risks.
- The risk management framework of Eurobank Holdings is appropriate and integrated in the Group’s decision-making process.
- Eurobank Holdings has suitable methods, tools, models and data sources in place, as well as suitable and competent staff to identify, assess, monitor and mitigate risks.
Supervision and assessment
The Board Risk Committee monitors and assesses:
- The risk profile of Eurobank Holdings and the efficiency of the risk management policies it implements. It advises the Board of Directors based on its findings.
- The suitable stress tests performed at least once a year, for all major Eurobank Holdings risks.
- The compliance with the approved risk tolerance levels, the appropriateness of risk limits and the adequacy of provisions, as well as capital adequacy in general, in relation to the risks undertaken by Eurobank Holdings.
- The assessment of Eurobank Holdings’ capital and liquidity adequacy.
This assessment is performed at least once a year. It is based on the annual report prepared by the Group Risk Management General Division and the report prepared by the Internal Audit Group, among other sources.
Updates and recommendations
It updates the Board of Directors and the Audit Committee on risk management issues. It recommends to the Board of Directors the future risk management strategy.
The Board Risk Committee convenes at least once a month. It reports to the Board of Directors once every 3 months.
Appointment and office term
The Board Risk Committee consists of members appointed by the Board of Directors.
The current Board Risk Committee consists of:
- 3 Independent Non-Executive Directors of the BoD. One of them serves as Committee Chairman.
- 2 Non-Executive Directors of the BoD. One of them serves as HFSF Representative (HFSF). The HFSF appoints its observer on the Board Risk Committee in compliance with the provisions of the Relationship Framework Agreement (RFA).
The office term of the Committee members coincides with the office term of the Board of Directors, with the option to renew their appointment. In any case, the office term in the Committee should not be more than 12 years in total.
The Board Risk Committee Chairman has experience in commercial banking and is an expert on risk and / or non-performing exposures issues. He has deep knowledge of the European and international regulatory framework. Moreover, he meets the criteria laid down by the Hellenic Financial Stability Fund (HFSF) Law.