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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 83
One of the key missions of AfrAsia Bank Limited (the “Bank”)
is to identify, assess and manage the credit, operational,
market and liquidity risks to which the Bank is exposed, thereby
providing a sustainable environment to attract and promote
business opportunities whilst improving the risk/return profile
of its activities.
Through a robust internal control mechanism, together with
comprehensive and up-to-date risk policies, reliable decision
making support with strict adherence to the legal and regulatory
requirements, our goals remain to maintain the confidence of
the stakeholders by mitigating our risk through the management
of current and potential credit, operational, market and liquidity
risks.
RISK MANAGEMENT STRUCTURE
AfrAsia Bank Limited has clear risk management objectives and
a well-established strategy to deliver them, through core risk
management processes.
At a strategic level, the Bank’s risk management objectives are to:
identify the significant risks to the Bank;
formulate the Bank’s risk appetite and to ensure that business
profiles and plans are consistent with it;
establish strong and independent reviews in a dynamic
structure; optimisation of risk and return decisions are taken
as closely as possible to be in line with our core business;
ensure business growth plans are properly supported by
effective risk infrastructure; and
ensure that the management of risk profile for specific
financial deliverables remain possible under a range of
adverse business conditions.
The Bank’s main approach is to establish a solid and effective
Risk Management infrastructure in terms of people, systems,
policies, procedures, control and compliance and to recommend
to the Board changes to meet the challenges of the dynamic
market.
The Bank also has a clear organisational structure and
comprehensive policies and procedures to identify, evaluate,
monitor and control risks across the organisation. Reviews and
modifications to these risk management policies and procedures
are regularly carried out to reflect changes in markets and
business strategies.
AUDIT
COMMITTEE
ASSET AND LIABILITY
COMMITTEE (ALCO)
MANAGEMENT
CREDIT COMMITTEE
(MCC)
CONDUCT
REVIEW
COMMITTEE
BOARD OF
DIRECTORS
BOARD RISK
COMMITTEE
COMPLIANCE
AND AUDIT
CREDIT AND
RISK COMMITTEE
FINANCE AND TREASURY
BACK OFFICE/MARKET
RISK DEPARTMENT
The Board has delegated some of its functions to a number of committees and departments as follows:
RISK MANAGEMENT REPORT