Statement of compliance with the code of principles of good corporate governance - continued
Part 1: Compliance with the code - continued
Principle 4: The Responsibilities of the Board - continued
The Board, together with senior management and the Chief Risk Officer, is responsible for establishing the Bank's risk appetite, overseeing risk management, and ensuring that the Bank's policies and procedures comply with regulatory requirements. It also oversees the Bank's adherence to the Risk Appetite Statement, risk policy, and risk limits. The Board evaluates the Bank's long-term plans, budgets, and forecasts, as well as its financial and operating results, to ensure that they are aligned with the Bank's strategic objectives.
Furthermore, the Board is responsible for approving the approach and overseeing the implementation of key policies pertaining to the Bank's capital adequacy assessment process, capital and liquidity plans, compliance policies and obligations, and the internal control system. The Board oversees the integrity, independence, and effectiveness of the Bank's policies and procedures for whistleblowing.
The Board also ensures that the Bank has appropriate policies and procedures in place that guarantee that the Bank and its employees adhere to the highest standards of corporate conduct and comply with applicable laws, regulations, business, and ethical standards.
The Board also delegates specific responsibilities to Committees, which operate under their respective Charters or Policies. In this respect, the Board has established the following Committees:
The Board has delegated to the Audit Committee its oversight responsibilities for financial reporting, disclosures and the effectiveness of the Bank’s internal control systems. The Audit Committee is required at all times to be composed of at least three non-executive directors, with the majority of its members to be independent of the Bank.
The purpose of the Audit Committee is to:
i.oversee the integrity and quality of the Bank’s financial reporting process;
ii.the effectiveness of the internal audit function;
iii.monitoring of the Bank’s legal and ethical compliance;
iv.the monitoring of the qualifications, performance and independence of the Bank’s external auditors; and
v.the quality of the Bank’s internal controls.
The Audit Committee is composed of the following members:
i.Esa Tapani Teravainen (Chairman)
ii.Clemens-Matthias Fritz Krause
iii.Klaus Oscar Schmidt
The Board has delegated to the Risk Committee its oversight responsibilities of the risk management function of the Bank. The Risk Committee is required at all times to be composed of at least three directors, two of whom must be non-executive directors, and must have appropriate knowledge, skills and expertise concerning risk management and control practices.