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How We Operate

Building The Better Bank Material Issues How We Operate

Governance, Ethics and Integrity Executive Compensation Managing Risk

Responsible Banking Extraordinary Workplace Environmental Leadership Strengthening Communities Reporting

Managing Risk


Everyone in the bank has a role to play in risk management. It’s essential that we each play our part in order to protect our institution, our customers and our employees.

Managing Environmental Risk

Management of environmental risks is integrated within the TD Bank Group enterprise risk framework. Within this framework, environmental risk is the possibility of loss of strategic, financial, operational or reputational value resulting from the impact of environmental issues or concerns and related social risk within the scope of short-term and long-term cycles.

Key environmental risks include: n


One of TD’s Guiding Principles is to only take risks that we understand and can manage. TD executives, directors and employees look to the Enterprise Risk Framework and our Risk Appetite Statement for a common understanding of how we manage risk.

TD employs a “three lines of defence” model that describes the role of the businesses in managing risk across TD: governance, risk and oversight risk groups, and internal audit. We regularly monitor and report on risk levels and compliance within TD’s risk appetite to senior management, the Board and its committees. We also run education sessions, communication programs and internal risk-management conferences to increase awareness across the organization.


We take risks required to build our business, but only if those risks:

1) Fit our business strategy and can be understood and managed

2) Do not expose the enterprise to any significant single-loss events; we don’t “bet the bank” on any single acquisition, business or product

3) Do not risk harming the TD brand


Continued enhancement of the enterprise Risk Appetite Statement, associated measures and reporting


Further development of an emerging risk- identification framework that includes how we manage emerging risks, including planning for uncertain and unexpected impacts

n n

Direct Risks. Risks associated with the ownership and operation of our business, such as management and operation of company-owned or managed real estate, fleet, business operations and associated services

Indirect Risks. Risks associated with environmental events such as changing climate patterns that may have an impact on our retail customers and clients to whom TD provides financing or in which TD invests

Risk Arising from Changing Regulatory Environment. Including identification and management of emerging environmental regulatory issues


Risk of Opportunity Loss. Failure to understand and appropriately leverage environment-related trends to meet customer and consumer demands for products and services

TD’s Business Continuity and Crisis Management (BCCM) program is proactive and iterative in its approach to assessing risk and potential threats, ensuring that appropriate resilient arrangements are in place. The program routinely undertakes scenario testing and simulations to assess the potential impact of a range of natural events across our business.

In 2014, the BCCM team launched an enhanced global crisis structure, which included consideration of natural events associated with climate change that may impact TD or our ability to continue conducting business.



TD 2014 Corporate Responsibility Report Page 15


+ Read more on how TD Insurance is working to protect customers from changing climate patterns.

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