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Governance and risk management

The Board is responsible for the oversight of ANZ and its sound and prudent management, with specific duties as set out in its charter available on

Five principal Board Committees have been established to assist the Board in the exercise of its authority and oversight of the organisation — the Audit Committee, the Ethics, Environment, Social and Governance (EESG) Committee, the Risk Committee, the Human Resources Committee and the Digital Business and Technology Committee. Each Committee has its own charter, available here, setting out its roles and responsibilities.

ANZ has a Risk Management Framework in place to help identify, measure, evaluate, monitor, report, and control or mitigate our material risks. The Board is responsible for establishing and overseeing the bank’s risk management framework, with the Board Risk Committee responsible for developing and monitoring compliance with ANZ’s risk management policies. Management reports concerning the implications of new and emerging risks are reviewed by the Risk Committee. This may include risks that arise from the social and environmental impacts of our lending decisions.

Our Internal Audit function evaluates and provides advice on how to improve the effectiveness of ANZ’s operations, including our risk management processes. Internal Audit reports to the Risk Committee quarterly and our Chief Risk Officer attends the Board Audit Committee twice a year to report on the effectiveness of the Risk Management Framework and any material issues.

At management level, the Group Executive Committee (ExCo) comprises ANZ’s most senior executives. There is a delegations of authority framework that clearly outlines those matters delegated to the CEO and other members of senior management. In addition, there are a number of formally established management committees that deal with particular sets of ongoing issues.

For further detail on ANZ’s governance framework see our Corporate Governance Statement.

Our approach to Environmental, Social and Governance (ESG) risk management

Our Annual Review outlines how our most material social and environmental risks and opportunities are captured and managed within our existing Material Risk categories.

Ethics, Environment, Social and Governance (EESG) Committee

The EESG Committee, led by ANZ’s Chairman, has a specific focus on sustainability, approving the bank’s sustainability targets and reviewing progress in achieving them. It also advises management on ESG issues and reviews minutes from management committees regarding sustainability issues.

Ethics and Responsible Business Committee (ERBC)

The ERBC, chaired by the CEO, is comprised of senior executives from business divisions and Group functions, including Risk, Public Affairs and Human Resources. The Committee is a leadership and decision making body that exists to advance ANZ’s purpose.

Among other responsibilities, the ERBC agrees and sets ANZ’s risk appetite for industry sectors to align with the bank’s purpose and values. It oversees ‘who we bank’ and ‘how we bank them’ making sure we align our lending decisions and products, services and processes with our purpose. It also monitors current and emerging ESG risks and opportunities, debating and agreeing a wide range of issues, particularly those that have the potential to impact the bank’s reputation.


Risk culture

Risk culture is an intrinsic part of our overall Risk Management Framework. Risk Culture is led from the Board down and across the whole group. At ANZ, “Risk is everyone’s responsibility”.

There are a number of policies, processes and controls in place to help ensure that a sound risk culture is established and maintained throughout ANZ. We also regularly review industry best practice to continually enhance ANZ’s current risk culture.

Managing reputation risk

We manage reputation risk by maintaining a positive and dynamic culture that:

  • ensures we act with integrity; and
  • enables us to build strong and trusted relationships with customers and clients, with colleagues, and with the broader society.

We have well established decision-making frameworks and policies to ensure our business decisions are guided by sound social and environmental standards that take into account Reputation Risk.

Our Reputation Risk Policy helps employees identify the day-to-day issues that can impact ANZ’s reputation. The policy highlights decisions that are particularly important to ANZ’s reputation, like designing or approving a product, lending money to a new client or entering a joint venture with a third party.

The Ethics and Responsible Business Committee supports the implementation of the policy and provides a forum where employees can obtain advice on complex or controversial issues involving clients, transactions or products.