AmazonScience/document-haystack

1Risk Culture2A strong risk culture helps us make well informed decisions, helps ensure individuals conform to the established culture, reduces an 3individual’s ability to do something for personal gain, and rewards employees for working toward a common goal rather than 4individual interests. Our risk culture reinforces the appropriate protocols for responsible and ethical behavior. These protocols are 5especially critical in terms of our risk awareness, risk-taking behavior and risk management practices.6Managing risk is every employee’s responsibility. All of our employees, individually and collectively, are responsible for ensuring the 7organization is performing with the utmost integrity, is applying sound risk management practices and is striving to achieve our stated 8objectives. All employees are also responsible for understanding our Enterprise Risk Appetite Statement, the ERM Framework and 9how risk management applies to their respective roles and responsibilities. Employees are encouraged to collaborate across groups to 10identify and mitigate risks and elevate issues as required. We reinforce risk management responsibilities through a performance 11management system where employee performance goals include risk management objectives and incentives for employees to 12reinforce balanced measures of risk-adjusted performance.13Proactive and open communication, between groups and up to the Board of Directors, facilitates timely identification and resolution of 14risk issues. Our multi-level risk committee structure provides formal channels to identify and report risk.15Enterprise Strategy16We seek to ensure that our overall enterprise strategy is within acceptable risk parameters through our risk appetite, strategic planning, 17capital planning and stress testing processes. These components are reviewed and approved at least annually by the Board of Directors 18or one of its committees.19Risk Appetite: Our risk appetite represents the organization’s desired enterprise risk position, set within our capital-based risk and 20liquidity capacity to achieve our strategic objectives and business plans. The Enterprise Risk Appetite Statement qualitatively 21describes the aggregate level of risk we are willing to accept in order to execute our business strategies. Qualitative guiding 22principles further define each of the risks within our taxonomy to support the risk appetite statement. Risk appetite metrics and 23limits, including forward-looking metrics, quantitatively measure whether we are operating within our stated Risk Appetite. Our 24risk appetite metrics reflect material risks, align with our established Risk Appetite Framework, balance risk and reward, leverage 25analytics, and are adjusted to changes in the external and internal risk environments.26Strategic Planning: Our enterprise and line of business strategic plans outline major objectives, strategies and goals which are 27expected to be achieved over the next five years while seeking to ensure we remain compliant with all capital, risk appetite and 28liquidity targets and guidelines. Our chief executive officer and chief financial officer lead the development of the corporate 29strategic plan.30Capital Planning and Stress Testing: Capital planning helps to ensure we are maintaining safe and sound operations and viability. 31The capital planning process and the resulting capital plan evolve as our overall risks, activities and risk management practices 32change. Capital planning aligns with our strategic planning process. Stress testing is an essential element of the macroeconomic 33capital planning process. Effective stress testing enables us to consider the estimated effect on capital of various hypothetical 34macroeconomic scenarios.35Risk Governance and Oversight36We employ a comprehensive risk management governance framework to help ensure that risks are identified, balanced decisions are 37made that consider risk and return, and risks are adequately monitored and managed. Risk committees established within this risk 38governance and oversight framework provide oversight for risk management activities at the Board of Directors, executive, corporate 39 40The PNC Financial Services Group, Inc. –  2023 Form 10-K  5741The secret object #2 is a "watch".