Risk Management Infrastructure

 

Overview

 

The Board of Directors, is ultimately responsible for the management of risk of the Bank. The Board ensures effective implementation of the risk management policies and determines the risk level, consistent with the risk appetite of the Bank. Given the size and complexity of its operations, the Board has established dedicated committees to assist in overseeing and managing total risks and specific risks faced by the Bank. This has provided the necessary infrastructure for managing risk within the Bank and for implementing various risk management policies and procedures.

The key committees involved in risk management are as follows:

 

Board Risk Management Committee (BRMC)

The BRMC, a board level committee, is responsible for the overall risk management of the Bank, including credit risk, operational risk, liquidity risk, and market risk and asset liability management within the Bank. BRMC assists the Board in fulfilling its governance and discharging its duties for effective risk oversight for the BPMB Group.
 

Board Credit Committee (BCC)

The BCC, also a board level committee, is to provide supervisory and oversight role on all loans/financings/credit related proposals and investments as per the limit set in BPMB’s authority limit documents and to ensure adequate risk management processes are in place and functioning effectively.
 

Group Credit Committee (GCC)

GCC is the Management-level committee that decides on loan/financing proposals and investments of up to its approving limit. Loans of higher limit will also be evaluated and discussed at this Committee and would be recommended higher approving authorities.
 

Management Risk Committee (MRC)

Management Risk Committee (MRC) is a Committee to review and recommend to BRMC, where approval had been delegated by the Board, the body that provides tactical and strategic direction for the risk management of the Banking Group i.e. credit, capital, operational, regulatory, reputation and Shariah Non-Compliance (SNC) risk.
 

Asset & Liability Management Committee (ALCO)

The objective of the Asset & Liability Management Committee (ALCO) is to serve as the primary oversight function and deliberate key issues related to asset and liability management, market, liquidity and capital risk.