macquarie.com.au  2014 Annual Financial Report  Macquarie Group Limited and its subsidiaries  Corporate Governance Statement  continued  Chief Executive Officer and Chief Financial Officer  declaration  Oversight of risk management  Oversight of remuneration arrangements  10  the BRC. The BRC annually reviews the remuneration  strategy to ensure it delivers the best outcomes for  Macquarie and its shareholders. Unlike Macquarie executives, NEDs are not granted equity,  nor are they eligible to receive bonus payments. They do  not receive payments on their retirement from office other  than payments accruing from superannuation contributions  comprising part of their remuneration. Macquarie’s NEDs are  remunerated for their services from the maximum aggregate  amount approved by shareholders for that purpose. The  current limit of $A4 million was approved by Macquarie  shareholders at the 2010 AGM. Details of Macquarie’s  approach and the amount of remuneration paid to NEDs are  contained in the Remuneration Report in the Directors’  Report. The Macquarie and Macquarie Bank Boards have each  received written confirmation from their respective CEO and  Chief Financial Officer that their statement given to the Board  in accordance with section 295A of the Act is founded on a  sound system of risk management and internal control and  the system is operating effectively in all material respects in  relation to financial reporting risks. Macquarie’s senior management has also reported to  the Boards of Macquarie and Macquarie Bank on the  effectiveness of the management of material business  risks for the year ended 31 March 2014. To align the interests of the Board with shareholders, NEDs  are required to progressively acquire a minimum of 6,000  shares in Macquarie over a period of five years from the  date of their appointment.  Risk management is sponsored by the Board and is a top  priority for Management. All members of the Board and the  CEO of Macquarie Bank are members of the Board Risk  Committee to focus appropriate attention on the oversight of  risk.  Each NED’s remuneration and current Macquarie  shareholding are set out in the Key Management Personnel  disclosure in the Remuneration Report and the Key  Management Personnel disclosure in the notes to the  financial statements in the 2014 Annual Financial Report.  Macquarie's risk appetite statement is approved by the  Board and sets out the degree of risk Macquarie is willing to  take overall and for each material risk type. The Board  reviews Macquarie’s risk appetite as part of the annual  corporate strategy review process. Macquarie recognises  that an effective risk management framework involves more  than just robust controls. Macquarie's risk culture, which is  less tangible, is equally as important and at Macquarie the  risk culture remains strong, and controls are respected by  staff.  Details of the nature and amount of remuneration (including  non-monetary components such as equity grants) for each  Executive Voting Director and the members of the Executive  Committee as well as Macquarie’s remuneration policies and  practices are set out in the Remuneration Report. The Chief Risk Officer (CRO) is a member of Macquarie’s  Executive Committee and reports directly to the CEO. The  CRO has a secondary reporting line to the Board Risk  Committee which approves the replacement, appointment,  reassignment or dismissal of the CRO. The CRO presents on  risk matters at the Board Risk Committee meeting, and in  months where there is no scheduled Risk Committee  meeting, at the Board meeting.  The Head of Internal Audit is jointly accountable to the  BAC and the CRO. Internal Audit findings are reported to the  BAC. The Head of Internal Audit cannot be removed or  replaced without the approval of the BAC.  At the executive management level, the Macquarie and  Macquarie Bank Executive Committees and Operations  Review Committee focus on strategic issues, operational  issues, material transactions, the management of risk and  the review the performance of Macquarie on a monthly  basis. Beneath this level, there are other committees where  senior specialists focus on speci fic risks as appropriate . The  Market Risk Committee and the Asset and Liability  Committee are examples of these committees. Macquarie’s approach to risk management is detailed in the  Risk Management Report  in the Annual Financial Report and  is available on Macquarie’s website. The Board of Directors oversees Macquarie’s remuneration  arrangements, including executive remuneration and the  remuneration of Macquarie’s NEDs. The Board is assisted by 