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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 85
RISK COMMITTEES ESTABLISHED BY THE BOARD OF DIRECTORS
The Board Risk Committee (BRC) is made up of three Independent Directors, one Non-Executive
Director and the Chief Executive Officer. The Independent Directors are experienced risk
professionals with extensive experience in emerging markets and Mauritius.
The BRC is a consultative as well as an approval panel for facilities exceeding the Management
Credit Committee’s lending authority as defined in the Credit Risk Policy. In this capacity, the BRC
examines and approves large credit applications where global exposures exceed MUR 50m.
BOARD RISK
COMMITTEE
The Audit Committee is composed of the three Non-Executive Independent Directors, which met
four times during the year under review.
The Audit Committee’s principal responsibilities are to ensure that the Bank implements and
maintains appropriate accounting, internal control and financial disclosure procedures, evaluating
and approving the related procedures. It can also have consultations with both the Bank’s internal
and external auditors, as required.
AUDIT
COMMITTEE
The Conduct Review Committee (CRC) is composed of the three Non-Executive Independent
Directors and one advisor, which met four times during the year under review.
CRC reviews the Bank’s transactions with related parties ensuring that the latter is in compliance
with all reporting and/or approval procedures of the Bank of Mauritius. The CRC also reviews all
related party transactions with any shareholder when said dealings are above 2% of Tier 1 capital
ensuring that transactions which could materially affect the financial stability of the Bank are
identified at source
CONDUCT
REVIEW
COMMITTEE
The Bank’s Asset and Liability Committee’s overall responsibility is to ensure that the Bank’s overall
asset and liability structure including its liquidity, currency and interest rate risks are managed
within limits and targets set by the Board Risk Committee.
This committee, which comprises the CEO, the Deputy CEO, Head of Global Banking, Treasury and
Markets, the General Manager, Domestic Banking Relationships & Sales, the General Manager and
Director of AfrAsia Private Banking, the Head of Finance & Treasury Back Office, the Head of Credit
& Risk, the Money Market Executive, the Market Risk Executive and the Head of Global Business &
Structured Trade meets at least once a month.
ASSETS AND
LIABILITIES
COMMITTEE
The Management Credit Committee (MCC) assists the Board to formulate, approve and
implement loan policies, guidelines and credit practices of the Bank. It is also responsible for the
implementation and maintenance of the Bank’s credit risk management framework. Key objective
of the MCC is to evaluate, review and sanction credit applications up to and including MUR 50m
and those referred by lower mandates or, which cannot be sanctioned at lower levels.
MCC reports to the BRC and comprises of eight permanent members among whom are three
voting members (the CEO, the Head of Finance & Treasury Back Office and the Head of Credit
& Risk). The other five members are “in attendance” (the General Manager, Head of Banking
Treasury and Markets, the Head of Domestic Banking Relationships & Sales, the Head of Strategic
Development and the Credit Risk Managers - International Business & Domestic Corporate)
MANAGEMENT
CREDIT
COMMITTEE