Risk and audit committees

(a) Establishment Not later than 1 year after the date of enactment of this Act, the Reserve shall establish— (1) a risk committee; and (2) an audit committee. (b) Duties and responsibilities (1) Risk committee Subject to the direction of the Board, the risk committee established under subsection (a)(1) shall be responsible for— (A) formulating risk management policies of the operations of the Reserve; (B) reviewing and providing guidance on the operation of the global risk management framework of the Reserve; (C) developing policies for enterprise risk management, risk monitoring, and the management of strategic, reputational, regulatory, operational, developmental, responsible production, and financial risks; (D) developing the risk profile of the Reserve, including a risk management and compliance framework and governance structure to support such a framework; (E) monitoring Reserve participants to ensure existing participants do not become foreign entities of concern; and (F) developing and using a mechanism to remove participants if more than 25 percent of that participant is owned, controlled, directed, financed, or otherwise influenced, directly or indirectly, in whole or in part by the government of a foreign entity of concern. (2) Audit committee Subject to the direction of the Board, the audit committee established under subsection (a)(2) shall be responsible for— (A) the integrity of— (i) the financial reporting of the Reserve; (ii) systems of internal controls relating to finance and accounting of the Reserve; and (iii) the financial statements of the Reserve; (B) the performance of the internal audit function of the Reserve; and (C) the compliance of the Reserve with legal and regulatory requirements relating to the finances of the Reserve.