Implementing Enterprise Risk Management: Case Studies and Best Practices

CHAPTER 13 TD Bank's Approach to an Enterprise Risk Management Program

PAUL CUNHA

Vice President, Enterprise Risk Management for TD Bank Group

KRISTINA NARVAEZ

President and Owner of ERM Strategies, LLC

This case study focuses on how TD Bank Group uses enterprise risk management (ERM) to grow profitably while keeping in mind the balance between taking and managing its risks. TD recognizes that having a strong risk culture and approach to risk management is fundamental to success. TD's ERM approach is comprehensive and proactive. It combines the experience and specialized knowledge of individual business segments, risk professionals, and the corporate oversight functions. It is based on enabling TD's business to understand the risks it faces and to develop the policies, processes, and controls required to manage them appropriately in alignment with the bank's strategy and risk appetite.

BACKGROUND

Headquartered in Toronto, Canada, with more than 85,000 employees in offices around the world, TD and its subsidiaries offer a full range of financial products and services to approximately 22 million customers worldwide through three key business lines:

1. Canadian retail, including TD Canada Trust, TD Auto Finance Canada, Canadian credit cards, Canadian wealth, and TD Insurance
2. Wholesale Banking, including TD Securities
3. U.S. retail, including TD Bank (“America's Most Convenient Bank”), TD Auto Finance U.S., U.S. wealth, and U.S. credit cards

As of April 30, 2014, TD had $896 billion ...