Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 250

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 250
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 asset-backed commercial paper conduits, indemnification agreements and intercompany guarantees. Information about such arrangements is provided in Note 22 under the heading “Other Off-Balance Sheet Risk.”

Guarantees

We are a guarantor in various agreements with third parties. As guarantor, we may be contingently liable to make payments to the guaranteed party based on changes in a specified interest rate, foreign exchange rate or other variable (including the occurrence or nonoccurrence of a specified event). These variables, known as underlyings, may be related to an asset or liability, or another entity’s failure to perform under a contract. Additional information regarding these types of arrangements is presented in Note 22 (“Commitments, Contingent Liabilities, and Guarantees”) under the heading “Guarantees.” 

Risk Management

Overview

Like all financial services companies, we engage in business activities and assume the related risks. The most significant risks we face are credit, compliance, operational, liquidity, market, reputation, strategic, and model risks. Our risk management activities are shown in the following chart, and we manage such risks across the entire enterprise to maintain safety and soundness and maximize profitability. Certain of these risks are defined and discussed in greater detail in the remainder of this section.

Federal banking regulators continue to emphasize with financial institutions the importance of relating capital management strategy to the level of risk at each institution. We believe our internal risk management processes help us achieve and maintain capital levels that are commensurate with our business activities and risks, and 

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conform to regulatory expectations. The table below depicts our risk management hierarchy and associated responsibilities and activities of each group.

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GroupOverview and ResponsibilitiesActivitiesBoard of Directors–Oversight capacity–Oversees that Key’s risks are managed in a manner that is effective and balanced–Fiduciary duty to Key’s shareholders–Understands Key's risk philosophy–Approves the risk appetite–Inquires about risk practices–Reviews the portfolio of risks–Compares the actual risks to the risk appetite–Is apprised of significant risks, both actual and emerging, and determines whether management is responding appropriately–Challenges management and promotes accountabilityBoard of Directors Audit Committee (a)–Assists the Board in oversight of financial statement integrity, regulatory and legal requirements, independent auditors’ qualifications and independence, and the performance of the internal audit function and independent auditors–Assists the Board in oversight of financial reporting, legal matters, and fraud risk–Meets with management