Risk Management Plan Used in the Bank of America

RiskManagement Plan Used in the Bank of America

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RiskManagement Plan Used in the Bank of America

TheBank of America is the second largest bank in America with totalassets of 2.1 trillion dollars after the JPMorgan Chase. The Bank ofAmerica in located in Charlotte in North Carolina. The Bank ofAmerica has committed team of both board of directors and executivecommittee that ensures that the customers are given the best servicesand opportunities throughout their financial lives (Zaik, Walter,Retting, &amp James, 2012). To ensure that the bank face thefinancial risks, the teams are used to develop mitigation plansthrough its leadership, expertise, positive judgment, and diversethoughts and experience of the executive committee this helps thebank officials to make responsible decisions for all itsstakeholders. Below is the list of the board of directors:

  1. Brian Moynihan- Chairman of the board of trustees and chief executive officer

  2. Jack O. Bovender, Jr.- Lead independent director

  3. Sharon L.

  4. Susan S

  5. Frank P,Bramble

  6. Pierre J.P

  7. Arnold W

  8. Charles K Gifford-Former chairman, Bank of America

  9. Linda P. Hudson

  10. Monica C Lozano

  11. Thomas J. May

  12. Lionel L. Nowell

  13. R. David Yost

Thesignificant role played by the board of directors in the Bank ofAmerica is to ensure corporate governance and to solve financialrisks facing its operations. On the other hand, the executivecommittee is made of:

  1. Brian Moynihan- Chairman of the Board and Chief Executive Officer

  2. Dean Athanasia- President in the preferred and small business banking Co-head, consumer banking

  3. Catherine P. Bessant-Chief operations and technology officer

  4. Sheri B. Bronstein- Human resources executive

  5. David C. Darnell- Vice Chairman

  6. Paul M. Donofrio- Chief Financial Officer

  7. Anne M. Finucane-Vice chairperson and global chief strategy and marketing officer

  8. Geoffrey S. Greener- Chief Risk Officer

  9. Christine P. Katziff- Corporate general auditor

  10. Terry Laughlin- President of Strategic Initiatives

  11. Gray G. Lynch –Vice chairman and global general counsel

  12. Thomas K. Montag- Chief Operating Officer

  13. Thong Nguyen- President, Retail Banking Co-Head, Consumer Banking

  14. Andrea B. Smith- Chief Administrative Officer

  15. Bruce R. Thompson- Managing Director

Theteam of the executives is qualified in providing financial solutions,giving advice to both small and large-scale business. Additionally,the presidents, CFO, and CEO are committed to providing sufficientmanagement and commercial delivery to the clients in the Bank ofAmerica. Consequently, there are unique solutions already put inplace that are used to mitigate the risks associated with banking. Asa result, Sarbanes-Oxley Act and other legislation have impactedfinancial reporting for the bank of America in various ways. Firstly,it is the sole responsibility of the presidents and CEO to ensurethat the bank meets the full financial relationship and customers’needs (Aebi,Sabato, &amp Schmid, 2012).Secondly, according to the legislative, the banking system should beeasy to use and access. This has enabled the executive committee toencourage dealer financial services that promote retail loans,banking services, and automotive dealings across America theseprocess aids in the process of asset-liability management by theexecutive.

Reference

Aebi,V., Sabato, G., &amp Schmid, M. (2012). Risk management, corporategovernance, and bank performance in the financial crisis. Journalof Banking &amp Finance,36(12),3213-3226.

Zaik,E., Walter, J., Retting, G., &amp James, C. (2012). RAROC at Bank ofAmerica: from theory to practice. Journalof Applied Corporate Finance,9(2),83-93.