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1and business levels. Committee composition is designed to provide effective oversight balanced across the three lines of defense in 2accordance with the OCC’s heightened standards and the Federal Reserve Board’s enhanced prudential standards. See the Supervision 3and Regulation section in Item 1 of this Report for more information.4To help ensure appropriate risks are being taken and effectively managed and controlled, risk is managed across three lines of defense. 5A summary of the Board of Directors’ and each line of defense’s responsibilities is provided below:6Board of Directors – The Board of Directors oversees our risk-taking activities, holds management accountable for adhering to 7the ERM Framework and is responsible for exercising sound, independent judgment when assessing risk.8First line of defense – The front line units are accountable for identifying, owning and managing risks to within acceptable levels 9while adhering to the ERM Framework. Our businesses strive to enhance risk management and internal control processes within 10their areas. Integrated and comprehensive processes are designed to adequately manage the business’ risk profile and risk appetite 11through identifying, assessing, monitoring and reporting risks that may significantly impact each business.12Second line of defense – The second line of defense is independent from the first line of defense and is responsible for establishing 13the risk governance framework and the standards within each independent risk area for identifying, measuring, monitoring, 14controlling and reporting aggregate risks. As the second line of defense, the independent risk areas monitor the risks generated by 15the first line of defense, review and challenge the implementation of effective risk management practices, perform independent 16assessment of risk, and report on issues or exceptions. The risk areas help to ensure processes and controls owned by the 17businesses are designed and operating as intended.18Third line of defense – As the third line of defense, Internal Audit is independent from the first and second lines of defense. 19Internal Audit provides the Board of Directors and executive management comprehensive assurance on the effectiveness of the 20ERM Framework and the risk management practices across the organization.21Within the three lines of defense, the independent risk organization has sufficient authority to influence material decisions. Our 22business oversight and decision-making is supported through a governance structure at the Board of Directors and management level. 23Specific responsibilities include:24Board of Directors – Our Board of Directors oversees our business and affairs as managed by our officers and employees. The 25Board of Directors may receive assistance in carrying out its duties and may delegate authority through standing or special 26committees. The following provides a summary of some of the key responsibilities of the Board’s standing committees:27• Audit Committee: monitors the integrity of our consolidated financial statements; monitors internal control over financial 28reporting; monitors compliance with our code of ethics; evaluates and monitors the qualifications and independence of our 29independent auditors; and evaluates and monitors the performance of our Internal Audit function and our independent 30auditors.31• Nominating and Governance Committee: oversees the implementation of sound corporate governance principles and 32practices while promoting our best interests and those of our shareholders.33• Human Resources Committee: oversees the compensation of our executive officers and other specified responsibilities related 34to talent and human capital matters affecting us. The committee is also responsible for evaluating the relationship between 35risk-taking activities and incentive compensation plans.36• Risk Committee: oversees our enterprise-wide risk structure and the processes established to identify, measure, monitor and 37manage the organization’s risks and evaluates and approves our risk governance framework. The Risk Committee has formed 38a Compliance Subcommittee to facilitate Board-level oversight of risk management in the compliance area.39• Corporate Responsibility Committee: oversees management’s corporate responsibility efforts, internally and externally, to the 40extent such corporate responsibility efforts are not specifically within the purview of another Board committee (e.g., climate-41related risks overseen by the Risk Committee and climate-related financial disclosures overseen by the Audit Committee), 42and implementation of PNC's publicly-announced Community Benefits Plan to provide loans, investments and other financial 43support to bolster economic opportunity for low- and moderate-income individuals and communities and other underserved 44individuals and communities, and to help remove historic barriers in the banking system.45• Technology Committee: oversees technology strategy and significant technology initiatives and programs, including those 46that can position the use of technology to drive strategic advantages, and fulfills the oversight responsibilities delegated from 47the Risk Committee with respect to technology risk, technology risk management, data risk, cybersecurity, information 48security, business continuity and significant technology initiatives and programs.49Management Level Executive Committee – The Management Level Executive Committee is responsible for guiding the creation 50and execution of our business strategy across PNC. With this responsibility, the Management Level Executive Committee 51executes various strategic approval and review activities, with a focus on capital deployment, business performance and risk 52management. This Committee also helps ensure PNC is staffed with sufficient resources and talent to operate within its risk 53appetite.54 5558    The PNC Financial Services Group, Inc. – 2023 Form 10-K