Rules of procedure of the Risk Policy Committee of the European Investment Bank

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1 Rules of procedure of the Risk Policy Committee of the European Investment Bank

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3 European Investment Bank of the European Investment Bank August 2015 Page 1/4

4 European Investment Bank Mandate 1. A Risk Policy Committee (RPC, the Committee) of the Board of Directors is constituted. It will give non-binding opinions and provide recommendations to the Board of Directors in relation to Bank risk policies so as to facilitate the decision-making process of the Board. Scope 2. RPC reviews Bank's policies with respect to the credit, market and, liquidity risks. It provides opinions and recommendations to the Board of Directors as to whether these policies are appropriate to the Bank's risk profile. 3. The RPC reviews and provides opinions and recommendations to the Board of Directors on the following high level risk policy documents upon proposal of the Bank: Group Risk Management Charter 1 ; Risk Appetite Framework; Internal Capital Adequacy Assessment Process (ICAAP) and Stress Testing Framework 4. The RPC reviews and provides opinions and recommendations to the Board of Directors on the following high level risk policy documents upon proposal of the Bank: The quarterly Risk Management Dashboard and Outlook; The annual report prepared by the Bank on the implemented restructurings of existing operations; and The main changes of the Credit Risk Policy Guidelines (CRPGs) and Financial Risk and ALM Policy Guidelines (FRPGs) as approved from time to time by the Management Committee of the Bank 5. The Bank shall ensure that relevant risk related information is presented in a timely and comprehensive manner to the Risk Policy Committee so that the Committee can discharge its responsibilities. In particular, the Committee shall receive the following documents: (i) The CARE report, quantifying and describing the major risks to which the Bank is exposed, including operational risks; (ii) The monthly Risk Report accompanied with a summary of the most relevant information; and (iii) Other key reports, including those prepared for the Audit Committee such as the framework of best banking practice and related status of compliance. 6. Beyond opinions and recommendations, the RPC may provide the Board of Directors with its feedback in relation to any documentation submitted to it by the Bank. 1 If RPC recommendations relate to the Group Risk Management Charter these shall be approved also by the Board of Directors of the EIF. August 2015 Page 2/4

5 European Investment Bank Composition 7. As a Committee of the Board of Directors, the Chairmanship shall be on the same basis as for the Board itself, i.e., as laid down in Article 9(2) of the Statute and 11.3 of the Bank s Rules of procedure, and hence it shall be chaired by the President of the Bank. In his absence, the President may delegate the Chairmanship of the meeting to an RPC member and/or one of the Vice- Presidents. 8. Membership of the Committee is on a voluntary basis. All Board Directors and alternate Directors are eligible. There should, however, be a reasonable representation across Member States. The members participating are appointed by the Board of Directors on a proposal by the Chairman of the Board of Directors and should be composed of nine (9), with one per Member State or group of Member States. 9. Each member of the RPC is entitled to appoint an alternate member of the RPC to be chosen among Board Directors or alternate Directors of its Member State or group of Member States which nominate alternate Directors as specified under Article 9(2) of the Statute. This alternate member of the RPC replaces the member of the RPC in case of absence of the latter. 10. Board of Directors members who are not members or alternates of the Committee may attend RPC meetings as observers. 11. The Vice-President in charge of Risk Management and the Director General of the Risk Management Directorate attend every meeting of the RPC and answer directly the questions of the members of the RPC. Members of the Management Committee and EIB staff can attend RPC meetings, upon request. Meetings 12. The RPC meets quarterly or more frequently at the request of the Chairman of the RPC or at the request of a minimum of three (3) members of the RPC. Special sessions of the RPC may be called to facilitate the preparation and discussion of strategic issues such as the Bank s Operational Plan. 13. Meetings can consist of a gathering of all participants in a physical location, or of video or telephone conferences. Meetings may be scheduled on the eve of Board meetings or, when longer discussion and/or preparation time is required for the RPC to issue its opinions and recommendations, separate from the Board of Directors meetings. 14. At the beginning of the year, an annual Work Plan and points for discussion will be proposed by the Bank, after consultation with RPC members, and reviewed every six (6) months. The Work Plan, as amended from time to time, will be posted on the Board of Directors Portal. 15. The RPC can extend an invitation to hold joint sessions with the Equity Participation Policy Committee when appropriate papers for discussion are tabled or with other Committees of the Board of Directors, as deemed necessary. The RPC can invite the Audit Committee to meet to discuss relevant topics and the terms of the meetings shall be agreed between the two committees. August 2015 Page 3/4

6 European Investment Bank 16. Notice of RPC meetings together with supporting documents must, normally, be issued not less than ten (10) business days before the date set for each meeting. 17. As mentioned in Article 11(3) of the Bank s Rules of procedure, the Secretary General of the Bank is responsible for the Secretariat of the RPC. The Secretariat will be responsible for the Outcome Note to be prepared after each RPC meeting, and for the preparation of formal recommendations to be submitted on behalf of the RPC to the Board of Directors, where applicable. Disclosure 18. The present rules of procedure and the names of the members of the RPC will be published on the Bank s website. August 2015 Page 4/4

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