Page 49 - Suncorp_Review

Suncorp Group Limited Annual Report 2010/11 47

4.3.2 Specifc accountabilities

The role of the Risk Committee is to oversee the adequacy and effectiveness of the risk management frameworks and processes within the Group. The Risk Committee has delegated authority from the Board to approve and oversee the processes used to identify, evaluate and manage risk. At its discretion, the Risk Committee may make recommendations to the Board, including recommendations on the Group’s risk appetite.

Group Chief Executive Offcer (Group CEO) – the Board has delegated to the Group CEO authorities and limits for key risks facing the Suncorp Group and the authority to commit and make operational and capital expenditures. The Group CEO has discretion to delegate these authorities and limits to management.

The Senior Leadership Team, comprising the Group CEO, Line of Business CEOs and Senior Executives, provides executive oversight and direction-setting across the Group, taking risk considerations into account.

The Group Chief Risk Offcer (Group CRO), a member of the Senior Leadership Team, is responsible for promoting and supporting risk considerations with the Senior Leadership Team. The Group CRO is charged with overall accountability for the Risk Management Framework and the overall risk management capability. The Group CRO reports to the Group CEO.

Management – Line of Business CEOs and Senior Executives have a mandate and an obligation to manage risk in accordance with the Board-approved risk appetite statements and more broadly in accordance with the Suncorp Group’s risk policies. Chief Risk Offcers (CROs), have formal lines of accountability to both their Line of Business CEO and the Group CRO which create greater ownership, understanding and awareness of risk. During the year dedicated CROs were appointed in Suncorp Life and Suncorp Business Services. CROs are also in place in General Insurance and Suncorp Banking.

Internal Audit provides independent testing and verifcation of the effcacy of corporate standards and business unit compliance, validates the overall risk framework and provides assurance that the risk management process is functioning as designed. Internal Audit provides reports to both the Audit Committee and Risk Committee and under the Internal Audit Charter adopted by the Audit Committee, members of the internal audit department have full, free and unrestricted access to all Suncorp Group activities, records, property and personnel. The internal audit function is independent of the external auditor.

4.4 External audit

External auditor engagement

The Audit Committee is responsible for recommending to the Board the appointment and removal of the external auditor and for determining the terms of engagement. The Suncorp Group’s external audit engagements were last put to tender in April 2002 and the Audit, Business Risk & Compliance Committee (as the Audit Committee was called at the time) was responsible for the oversight and administration of the tender process including:

–– determining the tender/selection process to be followed and identifying key issues to be addressed –– selecting the frms invited to tender –– making presentations to the tendering frms –– receiving and assessing presentations from the tendering frms; and

–– making a recommendation to the Board.

At the date of this report, the Suncorp Group’s auditor is KPMG. KPMG have a partner rotation policy that requires the signing and engagement partner to change every fve years in accordance with the requirements of the Corporations Act 2001 . The Board has endorsed that rotation policy.

External auditor independence

The external auditor provides a written report to each Audit Committee meeting, on audit and non-audit services provided to the Suncorp Group over the period since the last report to the committee and the fees charged for those services. These reports also confrm that the auditor has

maintained their independence in relation to the Suncorp Group having regard to relevant policies, professional rules and statutory requirements.

Attendance at Annual General Meetings

The Suncorp Group’s external auditor is required to attend the Company’s Annual General Meetings (AGMs) and shareholders are made aware at each AGM that the auditor is available to address questions relevant to the conduct of the audit and the preparation and content of the auditor’s report.

Part 5. Policies

Governance policies of general application throughout the Suncorp Group

5.1 Remuneration

The remuneration policies and structures in place for employees, management and directors over the reporting period, including full details of directors’ and executives’ benefts and interests, are explained in the Remuneration Report (part of the Directors’ Report).