Risk Management and Control functions
SEB ensures strong governance through an effective internal control framework. The Board sets direction, the CEO manages daily risks, and CRO, Group Compliance and Internal Audit provide independent oversight across the three lines of defence.
The Board shall ensure that SEB is organised in such a way that it has an effective internal control framework ensuring that all risks inherent in the activities of SEB are defined, identified, monitored, measured, and controlled.
The President and CEO is responsible for the day-to-day management of the activities of SEB in accordance with the directives of the Board. The President and CEO is overall responsible for managing all risks of SEB in accordance with the policies and instructions of the Board and the intentions as stated in the Board’s Risk Appetite Framework.
SEB’s CRO function ensures independent risk control
The Chief Risk Officer (CRO) function is a SEB Group-wide function which is independent from the business activities and forms part of the second line of defence. The CRO function is responsible for ensuring effective risk management framework across SEB by identifying, monitoring, analysing, measuring and managing risk to provide independent reporting of risks to the Board. The function is also dedicated to safeguarding SEB’s asset quality. It provides appropriate ex‑ante checks and balances in the credit decision‑making process. The CRO function ensures that all credit origination decisions made by the business divisions receive an independent second opinion.
Group Compliance at SEB ensures compliance with laws and regulations
Group Compliance is a SEB Group-wide function which is independent from the business activities and forms part of the second line of defence. The function identifies risks of non-compliance, through monitoring and control, where SEB may fail to fulfil its obligations under laws and regulations applicable to its licensed activity. Group Compliance shall control compliance with relevant SEB internal rules. In addition, Group Compliance provides advice and support to the Board, senior management and employees. Group Compliance also reports independently on deficiencies and risks to the board, the president and CEO and senior management.
Group Internal Audit evaluates governance, risk and control within SEB
Group Internal Audit is a SEB Group-wide function that is independent from all other activities in SEB and constitutes the third line of defence. The function is responsible for evaluating governance, risk management and control processes within first and second lines of defence.