The Bank’s Group Risk Management Division (GRMD) ensures that all material risks are identified, measured and properly reported. The Division is actively involved in elaborating the institution’s risk strategy and in all material risk management decisions.
The Board ensures the independence of the GRMD by providing it with direct access to the Board and the Risk Committee without any impediment.
The GRMD is independent from executive functions, business line responsibilities, operations and revenue generating functions. The GRMD functionally reports to the Risk Committee and administratively to the CEO.
The role of the GRMD includes the following (list is not exhaustive):
- Assist the Risk Committee, Board of Director, senior management to establish and communicate the Bank’s risk management objectives and direction.
- Assist the Board Risk Committee and senior management to develop and communicate management policies.
- Facilitate in the identification, measurement, monitoring, reporting and control of risks.
- Monitor and assess decisions to accept particular risks whether these are consistent with board approved policies on risk tolerance and the effectiveness of the corresponding risk mitigation measures.
- Report to senior management, the Risk Committee and the Board the results of the assessment and monitoring of risk exposures.
- Have sufficient expertise and operating experience enabling the challenging of decisions that affect the institution’s exposure to risk.
- Annually prepare a report to the CBC presenting key issues and developments within the Bank and review of the main risk areas.
- Submitting reports to the Board and relevant Committees and attending their meetings to present said reports and provide additional information and/or classification or assistance on managing the issues raised.
- Involved in any changes to the institution’s strategy, risk appetite framework and risk limits.