Risk Management Committee

 

 

Objective


The primary objective of the Risk Management Committee (RMC) is to oversee:




the overall management of all risks covering market risk management, credit risk management and operational risk management.



review and recommend the risk management policies and risk tolerance limits.



ensures infrastructure, resources and systems are in place for risk management.



Roles and Responsibilities


The RMC is primarily responsible for the effective and optimum functioning of the risk management function within the Bank and its responsibilities include:




Risk Management Strategies and Policies




Review and recommend risk management strategies and policies for Board's approval.



Review and propose the setting of the risk appetite/ tolerance of the Bank at enterprise and at strategic business unit levels to the Board.



Review new products and services to be submitted for Board's approval and highlighting the risk aspects to the Board.


 


Risk Management Governance and Organization Structure


 


Oversee the overall management of all risks covering market, credit and operational.



Ensure that there are clear and independent reporting lines and responsibilities for the overall business activities and risk management functions.



Inculcate risk management culture within the Bank.



Institute independent review of the Bank's risk management infrastructure, capabilities, environment and processes.


 


Risk Management Methodologies and Tools


 


Approve risk methodologies for measuring and managing risks arising from the Bank's business and operational activities.



Endorse the engagement of external and independent reviewers for the validation of risk measurement methodologies and outputs.



Review the allocation of risk-adjusted capital and broad-based limits across the Bank covering market, credit and operational risk.


 


Risk Management Infrastructure - Systems and Processes


 


Review the risk management processes, systems and internal controls throughout the Bank.



Review on periodic basis, risk exposures of the Bank in line with the risk management strategy.



Review the adequacy of tools, systems and resources for the successful execution of risk functions within the Bank.



Empower members of Management / Committee the authority to approve deviations from limits.



Review contingency plans for dealing with various extreme internal/ external events and disasters.