Company: WEBNF
Filing Date: 2025-11-04
Form Type: 20-F
Source: 0001104659-25-105894
Chunk: 49

Company: WESTPAC BANKING CORP
Filing Date: 2025-11-04
Form: 20-F
Item: Item 14
Chunk 49
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​                                                                                                                   ​   ​                                                                  ​     Note
Index                                                                                                                   Note name                                                              number
Credit risk                                                                                                         ​   Credit risk management framework                                   ​     11.1
The risk of financial loss where a customer or counterparty fails to meet their financial obligations to Westpac.   ​   Credit risk ratings system                                         ​     11.2
​                                                                                                                   ​   Credit risk concentrations and maximum exposure to credit risk     ​     11.3
​                                                                                                                   ​   Credit quality of financial assets                                 ​     11.4
​                                                                                                                   ​   Credit risk mitigation, collateral and other credit enhancements   ​     11.5
​
11.1.  Credit risk management framework
Please refer to Note 21.1 for details of Westpac’s overall risk management framework.

●   Westpac maintains a Credit Risk Management Framework, Credit Risk Management Strategy, Credit Risk Appetite Statement, and a number of supporting policies that define roles and responsibilities, acceptable practices, limits and key controls.
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●   The Credit Risk Management Framework describes Westpac’s approach to managing Credit Risk and to deliver fair customer outcomes. It includes the following components: business strategy, risk identification, risk appetite, stress testing and scenario analysis, people and infrastructure, controls, monitoring and reporting, and governance.
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●   The BRiskC, Westpac Group Executive Risk Committee (RISKCO) and Westpac Group Credit Risk Committee (CREDCO) monitor the risk profile, performance and management of Westpac’s credit portfolio and the development and review of key credit risk policies.
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●   The Credit Risk Rating System Policy applies across the full credit risk ratings and risk estimates lifecycle (i.e. development, implementation, monitoring, validation, use, and independent review), helping us reliably assess the credit risk to which Westpac may be exposed. A senior management self-assessment is presented for discussion at BRiskC annually. An independent review is also completed annually.
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●   Model Risk independently assesses and approves all credit risk models, and periodically reviews these in line with the Group Model Risk Policy and governance. Models are approved under delegated authority from the Deputy Chief Risk Officer. Model Risk is overseen by Westpac’s Model Risk Committee.
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●   In determining the provision for ECL, the forward-looking economic inputs