Doing the right thing is what we aim to do in all areas of our business – it guides our decisions.
Although Hodge Bank is a privately-owned entity, it aims to implement the highest standards of corporate governance. The following is a summary of the Bank’s corporate governance framework.
The Board has ultimate responsibility for the proper stewardship of the Bank in all its undertakings. It meets regularly throughout the year to discharge its responsibilities for all important aspects of the Bank’s affairs, including monitoring performance, considering major strategic issues, approving budgets and business plans and reporting to the shareholder.
A Board control manual has been adopted which describes the high-level policy and decision-making arrangements within the Bank. The manual includes a schedule of matters reserved to the Board together with those items delegated to directors and Board and executive committees.
The Board has established the following standing committees:
Executive Committee (ExCo)
The Committee is responsible for the formulation and execution of the strategy, and day-to-day management, subject to specific limitations and constraints imposed by the Board.
Enterprise Risk Committee
The Committee assists the Chief Risk Officer in the development and implementation of a robust enterprise wide risk management framework including consideration of strategic risks faced by the organisation and ensuring the adequacy of the internal control environment.
Operational & Conduct Risk Committee
The Committee assists the Chief Risk Officer in the development and implementation of a risk management framework to manage the operational and conduct risk profile, and to ensure the adequacy of the internal control environment.
Operations and Performance Committee
The Committee provides operational governance across the firm. This governance covers a range of key activities inclusive of oversight of internal and outsourced operations, Operational Resilience and forward-looking operational impacts to the business.
Assets and Liabilities Committee (ALCo)
The Committee implements the policies of the Board with respect to liquidity and interest rate risk management and provides recommendations to the Board on strategies for managing these risks. It also monitors and controls new business pricing and treasury counter party risk.
Commercial Credit Committee
The Committee is responsible for proposing a credit policy to the Board with respect to commercial lending and monitoring its application. It is also responsible for reviewing, challenging and if appropriate, approving credit proposals for new commercial lending business within its authority as delegated by the Board.
Retail Credit Committee
This Committee is responsible for proposing a credit policy to the Board in respect of all equity release business. It also monitors the application of credit policy, and ensures that all responsible lending requirements are met.
The Committee monitors the adequacy and appropriateness of the Bank’s actuarial models and methods, and reviews proposed changes. It also monitors the Bank’s overall exposure to insurance risks in light of actuarial experience.