No change in risk management principles
Macquarie’s risk management principles have remained largely stable over 30 years and served the
Group well over the past few years
The key aspects of Macquarie’s risk management approach are:
Ownership of risk at the business level
Understanding worst case outcomes
Business heads responsible for identifying risks within their businesses and ensuring these are managed appropriately.
Risk management approach based on examining the consequences of worst case outcomes and determining whether risks can be tolerated.
Seek a clear analysis of the risks before taking decisions.
Adopted for all material risk types and often achieved by stress testing.
Requirement for independent sign-off by Risk Management
Risk Management Group (RMG) signs off all material risk acceptance decisions.
For material proposals, RMG opinion sought at the early stage in decision making process, and independent input from RMG on risk and return is included in the approval document submitted to senior management.
Macquarie’s approach to risk is supported by the Risk Management Group
Macquarie determines aggregate risk appetite by assessing risk relative to earnings, more than by
reference to capital