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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 84
The Board Risk Committee performs fundamental functions for the Bank which include:
approving the delegation of credit limits to management and approving any transactions exceeding those delegated authorities;
reviewing and recommending for Board approval the Bank’s Risk Appetite Framework at least annually and reviewing the alignment of
the Bank’s strategic plan with the Risk Appetite Framework;
reviewing and approving risk management policies recommended by Bank management for identifying, accepting, monitoring, managing
and reporting on the significant risks to which the Bank is exposed; as part of such reviews, satisfy itself with the manner in which
material exceptions to such policies are identified, monitored, measured and controlled, as well as the remedial actions taken when
exceptions are identified;
reviewing and recommending for Board approval the Bank’s credit risk strategy at least annually;
reviewing, monitoring and recommending to the Board the approval of risk related policies, procedures and standards as required by
regulatory authorities;
overseeing the risk management function, having regard to its independence, by periodically reviewing the results of independent
reviews of the risk management function and reporting such results to the Board and overseeing that deficiencies identified related to
the risk management function are remedied within an appropriate time frame and reporting to the Board on the progress of necessary
corrective actions;
reviewing on a quarterly basis management’s report on the Bank’s lending profile, and discuss with management identified material risks
and emerging risk issues and trends;
reviewing quarterly reports on the Bank’s enterprise-wide risk profile (including credit, market, operational and liquidity risks) and
reviewing against its risk appetite;
reviewing and approving country limits in line with the Bank’s strategy and country appetite; and
reviewing and approving any other matters required by regulators from time to time.
Regular reporting enables the Board of Directors to monitor whether the overall risk policies and authorities are being complied with and
whether they meet the Group’s needs. In addition, the Board regularly reviews reports analysing the Group’s portfolio, including data on
industry concentrations.
RISK MANAGEMENT REPORT (CONTINUED)