The Risk Committee consists of non-executive BoD members appointed by the Board of Directors, who possess the appropriate knowledge, skills and expertise, in order to comprehend and monitor the risk & capital strategy of the Company and its Group. Pursuant to the provisions of Law 3864/2010, the Representative of the Hellenic Financial Stability Fund (HFSF) in the Board of Directors of Piraeus Financial Holdings participates in the Risk Committee with full voting rights.
The number of the Committee members cannot be lower than three (3) members and, in total, it cannot exceed 40% (rounded to the nearest whole number) of the total number of the BoD members (excluding the HFSF Representative). The majority of the members (rounded to the nearest whole number and excluding the HFSF Representative) should be independent.
Composition of the Risk Committee:
Chairman: The Committee’s Chairman is appointed by the Board of Directors and must possess solid experience in commercial banking and preferably risk management, as well as familiarity with the local and international regulatory framework, which regulates the company’s operation. The capacity of the BoD’s Chairman is incompatible with the capacity of the Risk Committee’s Chairman, while the Chairman of the Risk Committee cannot be the Chairman of Piraeus Financial Holdings’ Audit Committee at the same time. The Chairman of the Committee shall meet the criteria of art. 10 of Law 3864/2010.
Members: All members of the Risk Committee should possess adequate knowledge and previous experience in the financial services and banking industry, with at least one member having solid risk and capital management experience, as well as familiarity with the local and international regulatory framework.
Secretary: The Committee is supported by an Executive Secretary and a Secretary. The Risk and Compliance Officer is designated as the Executive Secretary by the Board of Directors. He/she is independent, reports directly to the Risk Committee and is subject to the audit by the Internal Audit.
The presence, participation and vote of a member of the Committee shall not be allowed during the discussion of an issue, for which he/she has a conflict of interests. The decisions concerning the specification of risk management policy, procedures, terms or criteria or other general implementation issues shall not fall under the above-mentioned ban.
Minutes are kept at all the meetings of the Committee and signed by the present members. In case of non-unanimous decisions, the views of the minority are recorded. The ratification of the minutes is included on the daily agenda of the very next meeting of the Committee.
The Committee convenes, upon its Chairman’s invitation, on a monthly basis, while additional meetings are likely to be convened, if necessary.
The Risk Committee’s mission is to ensure that:
(α) Piraeus Financial Holdings and its Group has a well - defined Group Risk & Capital Strategy and Risk Appetite Framework in line with its business goals as well as with the available human and technical resources. The risk appetite of Piraeus Financial Holdings and Group is articulated and clearly communicated in a set of quantitative and qualitative statements, and specific limits, for the material risks.
(b) All risks connected to the activity of Piraeus Financial Holdings and its Group are effectively identified, assessed, measured, controlled, mitigated and monitored.
(c) The risk management and control framework in place, including policies, methods and tools, complies with Risk & Capital Strategy and Risk Appetite as well as regulatory and supervisory requirements.
The Risk Committee is responsible for exercising the duties specified in the present terms of reference, in order to assist the BoD in its duties with regard to:
- The Group Risk & Capital Strategy and the Risk Appetite Framework have been developed and implemented properly and in line with Piraeus Financial Holdings Group business plan.
- Piraeus Financial Holdings and its Group have developed and implemented sound and comprehensive policies and procedures reliable methods and tools for the effective identification, assessment, measurement, monitoring, mitigation and control of the undertaken risks.
- The risk management and control framework is properly integrated in the decision-making processes of Piraeus Financial Holdings and its Group.
Details on the responsibilities and the operations of the Committee are available here