Risk Management
Overview
BPMB (the Bank) being a Development Financial Institution (DFI), is entrusted with a developmental role of providing medium to long term financing to projects in infrastructure, maritime and high technology sectors.
To enable the Bank to fulfil its financing intermediary role effectively, the Bank has established a comprehensive risk management system to identify, measure, monitor and control risks that will promote and maintain high asset quality and minimize reliance on collateral lending in its endeavour to achieve the mandate set by the Government.
As a DFI, where lending/financing is the core business, the Bank is faced with credit risk, liquidity risk, operational risk, market risk and product risk (among others) in carrying out its activities. In managing its business risk effectively and efficiently, the Bank has been guided by its Group Governance and Risk Management Framework, which outlines a sound basis for integrated risk management effort and internal control as components of good corporate governance. Specific policies and procedures have been established for each risk management function within the Group Risk Management as well as within the operational functions of the Bank. Towards this end, risk management in the Bank shall provide a framework to identify, objectively assess and actively manage all relevant potential risks and opportunities.