{ "docId": "019dd923-5e88-73ef-bd57-fcc3cf532e42", "docSlug": "72c67d77b7b29fa0", "documentTitle": "ubs best of switzerland conference presentation", "authorId": "UBS", "authorName": "UBS", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "equity_research", "sourceTypeLabel": "Equity research", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.707, "pageNumber": 154, "pageCount": 446, "prevPage": 153, "nextPage": 155, "slideType": "other", "function": "summarize", "density": "overcrowded", "nDataPoints": 0, "notes": "This is a text-heavy slide describing the Operational Risk Framework (ORF) and governance structure.", "elementsJson": [ "paragraph", "bullet_list" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd57-fcc3cf532e42/154", "deckHref": "/decks/019dd923-5e88-73ef-bd57-fcc3cf532e42", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd57-fcc3cf532e42.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd57-fcc3cf532e42#slide-154", "components": [ { "bbox": null, "kind": "callout", "text": "Operational risk is an inherent part of the firm's business.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-41a8-71cc-b874-bbd1c5db6e93", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.42, "x": 0.07, "y": 0.25 }, "kind": "list", "text": "classifying inherent risks through the operational risk taxonomy; assessing the design and operating effectiveness of controls; proactively and sustainably remediating identified control deficiencies; defining operational risk appetite; and assessing inherent and residual risk through risk assessment processes.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e8064694-d45d-49a1-9f19-f104ea3a46f6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.42, "x": 0.07, "y": 0.48 }, "kind": "paragraph", "text": "Divisional Presidents are accountable for the effectiveness of operational risk management and for the robustness of the front-to-back control environment within their business divisions, and legal entity responsible executives are responsible for operational risk management within their legal entities. Group function heads are accountable for supporting the divisional Presidents and legal entity responsible executives of our legal entities in the discharge of this responsibility, by confirming completeness and effectiveness of the control environment and operational risk management within their Group functions. Collectively, divisional Presidents, central Group function heads and legal entity responsible executives are in charge of implementing the operational risk framework.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "43c90a5e-0d7a-48cb-a48b-575d08484824", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.42, "x": 0.51, "y": 0.51 }, "kind": "paragraph", "text": "Key control deficiencies identified during the internal control and risk assessment processes must be reported in the operational risk inventory, and sustainable remediation must be defined and executed. These control deficiencies are assigned to owners at senior management level and the remediation progress is reflected in the respective managers' annual performance measurement and management objectives. To assist with prioritizing the most material control deficiencies and measuring aggregated risk exposure, irrespective of origin, a common rating methodology is applied across all three lines of defense, as well as by external audit.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5608514e-9dd1-4ef2-a5aa-6723ef9bcdfd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.42, "x": 0.07, "y": 0.12 }, "kind": "paragraph", "text": "Operational risk is an inherent part of the firm's business. Losses can result from inadequate or failed internal processes, people and systems, or from external causes. UBS follows a Group-wide operational risk framework (an ORF) that establishes requirements for identifying, managing, assessing and mitigating operational, compliance and conduct risks to achieve an agreed balance between risk and return. It is built on the following pillars:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9adec350-3010-4f88-8281-61c5bd9799de", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.42, "x": 0.51, "y": 0.35 }, "kind": "paragraph", "text": "In 2021, UBS continued to review and enhance the ORF through the established ORF design authority, considering feedback and input from both internal and external stakeholders, including implementing Group-wide control portfolio analytics, supporting consistency across the control portfolio. All functions within UBS are required to assess the design and operating effectiveness of their internal controls periodically. The output of these assessments forms the basis for the assessment and testing of internal controls over financial reporting as required by the Sarbanes-Oxley Act, Section 404 (SOX 404).", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a040f8fc-e649-46e4-92a3-a1b701aa3925", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.42, "x": 0.51, "y": 0.09 }, "kind": "paragraph", "text": "Compliance & Operational Risk Control (C&ORC) is responsible for providing an independent and objective view of the adequacy of operational risk management across the Group, and ensuring that operational, compliance and conduct risks are understood, owned and managed in accordance with the firm's risk appetite. C&ORC-aligned teams sit within the Group Compliance, Regulatory & Governance (GCRG) function, reporting to the Group Chief Compliance and Governance Officer, who is a member of the Group Executive Board. The ORF forms the common basis for managing and assessing operational, compliance and conduct risk, and there are additional C&ORC activities intended to ensure UBS is able to demonstrate compliance with applicable laws, rules and regulations.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cc4cca45-7832-400b-b2d2-c8a0b8f8cfe4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.6, "x": 0.07, "y": 0.03 }, "kind": "title", "text": "Risk, capital, liquidity and funding, and balance sheet | Risk management and control", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "99e2c19b-1f19-44eb-a73b-0232d8985a30", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.25, "x": 0.07, "y": 0.09 }, "kind": "title", "text": "Operational risk framework", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b3fbe231-b9b4-42f4-a045-4a9edc732ca3", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 446, "from": 81, "beatId": "0b1398a4-916e-492f-856a-8d8a0f442792", "arcName": "Monroe's Motivated Sequence", "arcSlug": "monroes-sequence", "beatName": "Action", "beatSlug": "monroes-sequence-action", "evidence": "The document concludes with detailed financial and operating performance data, and risk management information.", "position": 3, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }