Primary goal of our risk management framework is to ensure that outcomes of risk taking activities are predictable and consistent with the Bank's objectives and risk tolerance levels and that there is an appropriate balance between risk and return in order to maximize return to the shareholders. We adopt a holistic approach and have been engaged in extensive and detailed evaluation and assessment of our risk management in all areas of banking activities.

 

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Risk Management Committee

ICAAP Review Committee (IRC)

The internal capital adequacy assessment process (ICAAP) is a comprehensive process which requires board and senior management's oversight, monitoring, reporting and internal control. The committee reviews the capital measurement process to ensure the alignment of regulatory capital requirement with the true and actual risk profile of the bank and thus ensure long-term safety and soundness.

Other salient roles of ICAAP Review Committee are to review Credit Risk, Credit Concentration Risk, Operational Risk, Market Risk, Liquidity Risk, and other residual risks to ensure alignment of regulatory capital requirement with the true risk profile of the bank and thus ensure long-term safety and soundness.

Market Risk Management Committee (MRMC)

The Market Risk Management Committee has the overall responsibility to monitor and manage various risk exposures of the bank. It involves identification, assessment, monitoring, reporting and analysing of Market Risk profile associated with treasury operations. MRMC assesses risk parameters, oversees compliance with those risk parameters and develops hedging strategies.

The committee makes resource allocation for all categories of risk assets. MRMC also performs risk research and analysis for development of risk mitigation strategies.

Credit Risk Management Committee (CRMC)

The Credit Risk Management Committee mainly focuses on monitoring of bank wide credit risk ensuring compliance and implementation of Credit Risk Policy and Strategy approved by the Board. It ensures incorporation of regulatory compliance in the bank's policies and guidelines in regards to credit risk and subsequent compliance with all the risk parameters and prudential limits set-out by those regulatory guidelines. 

The committee also performs monitoring of quality of loan portfolio on a periodical basis, identification of problems and correction of deficiencies and monitoring of risk concentrations.

Operational Risk Management Committee (ORMC)

The ORMC reviews the risk profile, anticipates changes and threats in areas of high priority and works-out related mitigation strategies and assures that adequate resources are being assigned to mitigate risks as needed. It reviews reports from various business groups and units about their risk profile and mitigation programs and communicates with the business units and staff about the importance of operational risk. It also reviews and approves the development and implementation of operational risk methodologies and tools including assessments and loss event databases.

On a broad level, the committee monitors and ensures that appropriate ORM frameworks are in place by reviewing the reports with respect to operational risk profile of the bank and approves policy-related risk mitigation plan. 

Assets Liabilities Management Committee (ALCO)

ALCO is responsible for managing the balance sheet, off balance sheet exposures and capital within the performance and risk parameters laid down by the investment and other relevant policies of the bank. It provides direction to the bank's treasury and other businesses regarding short term business strategy taking into account market variables in relation to the bank's exposure and the bank's corporate plan.

The committee approves the liquidity and funding plans of the bank and assesses the liquidity risk facing the bank while articulating interest rate views. It also monitors key market and operations risk indicators, reviews the potential impact of concentrations and various scenarios on the bank's business and gives directives to mitigate and manage the related risk while ensuring adherence to tolerance/risk limits set by the board of directors.