RISK COMMITTEE REPORT
E. Gay Mitchell (Chair) Andrew J. Bibby Linda M.O. Hohol Sarah A. Morgan-Silvester Margaret J. Mulligan Irfhan A. Rawji
The Risk Committee assists the Board in overseeing risk management at CWB and balancing risks and opportunities while overseeing that management has policies, standards and guidelines in place to identify and effectively manage the significant risks to which CWB is exposed. The primary goal of risk management is to align the outcomes of risk-taking with our business activities, strategies, and risk appetite. The Risk Committee’s responsibilities include oversight of risk identification, measurement, and management by CWB’s Three Lines of Defence functions in accordance with CWB’s Enterprise Risk Management and Enterprise Risk Appetite Policies. The Risk Committee from time to time forms a LAP to deal with credit applications that are in excess of management’s delegated lending limit but within the limits of the LAP. The LAP also deals with loans to, or guaranteed by, a foreign country and approves credit applications in excess of the lending limits prescribed under the CWB Enterprise Risk Appetite Policy.
Meetings: Seven
At each quarterly meeting, the Risk Committee:
• Met separately with the CRO; and • Met in camera with management absent.
LAP
The mandate for the Risk Committee is available in the Corporate Governance section of CWB’s website at www.cwb.com/corporate-governance.
Andrew J. Bibby (Chair)
FISCAL 2023 HIGHLIGHTS
Each LAP is comprised of three Board members as determined from time to time by the LAP Chair and the SVP, Credit Risk Management.
• Reviewed and approved the following: -
Capital Risk Management Policy; Credit Risk Management Policy; Lending Limit Authority Policy; and
- -
Meetings: 14
The LAP Chair may schedule a panel meeting at any time, as needed.
- Recovery Plan. • Recommended to the Board for approval, the following: - Enterprise Risk Management Policy; - Enterprise Risk Appetite; and - Risk Appetite Metrics for Regulatory Capital Ratios. • Reviewed the following quarterly reports on the following topics: -
CRO report, including performance against Risk Appetite Metrics; - First and Second Lines of Defence reports on credit risk, liquidity and funding risk, capital risk, model risk, operational risk, climate risk and data governance; - Risk-based expected credit losses; - Progress of CWB’s project for the redevelopment and implementation of advanced risk-rating and loss given default models; and - Chief Internal Auditor’s report on topics relevant to the Risk Committee. • Recommended approval of internal capital ratio minimum and target levels and regulatory capital plan to the Board. • Recommend for approval the At-the-Market common share issuance program to the Board. • Recommended to the Board the declaration of dividends. • Review special reports on Real Estate Industry Deep Dive, Model Assurance Review, Focus on Driving Credit-risk Model Adoptions, Funding Concentration Framework, Contingency Funding Plan, Model Risk Management Framework and Macro Stress Test. • Provided input into the performance of the CRO. • Assessed the effectiveness of the GRM function. • Approved the budget, resourcing, and mandate for the GRM function. • Promoted and reinforced the importance of a strong risk culture throughout CWB. • Convened a joint meeting of the Risk and Audit Committees to review the model governance process and results for the performing loan allowance for credit losses.
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