ttb 56-1 One Report 2021 (EN)

The Board of Directors (BoD) holds the ultimate responsibility of overall risk management and delegates authorities to committees as follows: The Risk Oversight Committee (ROC) is appointed as a sub-committee of the Board, with clear roles and responsibilities as delegated by the Board. The Risk Oversight Committee’s role is to fulfill its oversight responsibilities in relation to the Bank’s risk governance framework and to ensure alignment of that framework with the Bank’s overall governance framework. To that end the Risk function, on a quarterly basis, compiles a Quarterly Oversight Risk Dashboard that combines key insights from all risk areas into one overview which enables the ROC to perform its activities. The following risk committees oversee specific risk areas and hold the responsibility to assure that each risk area is well-managed in alignment with overall risk management. 1. Risk Policy Committee: Ensures that credit risk is adequately controlled via a complete and up to date set of policies, guidelines, frameworks, standards, risk appetite, delegations of authority, procedures and models. In addition, the committee ensures that all inherent risks directly related to credit products and programs are properly addressed, reported and where possible mitigated. 2. Portfolio Management Committees: Ensure that the portfolio performance is on track and properly managed to meet both Business functions and Risk functions strategic short and long term goals. 3. IFRS9 ECL Committee: Considers and approves the level of provisions under the IFRS9 guiding principles for Expected Credit Loss and also considers and approves the management overlay to ensure proper coverage of the portfolio. 4. Legal Risk Committee: Considers and approves the proposed matters related to ISDA schedules and derivative agreements. 5. Bank Non-Financial Risk Committee and IT Non-Financial Risk Management Committee: Oversees the adequate development and implementation of non-financial risk policies and minimum standards to ensure that the non-financial risks and IT risks of the Bank and its subsidiaries are managed efficiently with the appropriate level of granularity. To ensure sufficient attention to non-financial risk issues across the businesses, the Bank set up three Business Unit Non-Financial Risk Committees for Retail, Automotive and Commercial Banking that report into the Bank Non-Financial Risk Committee. 6. Financial Markets Control Committee: Serves as a cross-functional forum for business and risk management functions with a primary focus on business practices, risk and control environment and end-to-end value chain of the Bank’s Financial Markets activities and its product approval and review. The Financial Markets Control Committee reports to Bank Non-Financial Risk Committee. 99 Form 56-1 One Report 2021

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