ANZ has a Risk Management Framework in place to help identify, measure, evaluate, monitor, report, and control or mitigate our material risks.

The Board has ultimate responsibility for ANZ’s Risk Management Framework with the support of five Board sub-committees:

Our Internal Audit function evaluates and provides advice on how to improve the effectiveness of ANZ’s operations, including our risk management processes. Internal Audit reports to the Risk Committee quarterly and our Chief Risk Officer attends the Audit Committee twice a year to report on the effectiveness of the Risk Management Framework and any material issues.

Risk culture

Risk culture is an intrinsic part of ANZ’s overall Risk Management Framework. Risk Culture is led from the Board down and across the whole group. At ANZ, “Risk is everyone’s responsibility”.

There are a number of policies, processes and controls in place to help ensure that a sound risk culture is established and maintained throughout ANZ. We also regularly review industry best practice to continually enhance ANZ’s current risk culture.

Managing reputation risk

ANZ has a clear framework for managing reputation, social and environmental risks.

Our Reputation Risk Policy helps employees identify the day-to-day issues that can impact ANZ’s reputation. The policy highlights decisions that are particularly important to ANZ’s reputation, like designing or approving a product, lending money to a new client or entering a joint venture with a third party.

The Reputation Risk Committee supports the implementation of the policy and provides a forum where employees can obtain advice on complex or controversial issues involving clients, transactions or products.