Page 65 - Demo

CORPORATE OVERVIEW
Area
Mitigation measures
Funding Concentration
Behavioural Analysis
Trading Book Management
LiqUiditY and maRket RiSk
to effectively manage its AlM and also to diversify its funding sources, the Bank has also availed of refinance from SIDBI and nABARD which now constitutes a significant portion of the total funding mix.
Commenced a behavioural analysis of cash flows, especially for CASA balances using Value at Risk (VaR) based approaches to identify potential mismatches.
Duration based limits, value at risk based limits and open position limits etc. are introduced. these trading limits are monitored on a real time basis by the Middle office. Any isolated instance of breach in limit is brought to the notice of stakeholders and remedial measures are taken.
information Security
the Bank understands that it operates in a highly dynamic threat environment and has thus taken a plethora of measures to ensure the safety of customers while they perform their banking transactions. the Bank has implemented state-of-the-art security technologies in its infrastructure and monitors the potential threats round the clock. a comprehensive strategy encompassing people, process and technology is constantly reviewed in the light of emerging threats, the security requirements of the business and best practices.
A 24x7 Cyber Security Operations Centre has been established that identifies potential incidents and takes the requisite action to respond, recover and learn from the incidents. thus the Bank has adopted an approach of continuous improvement when it comes to security. In the field of emerging technologies, the Bank has embraced Artificial Intelligence, Machine Learning, data Lake and User Behaviour Analysis for its Security operations centre.
the Bank regularly participates in cyber drills conducted by the institute of development and Research on Banking technology (idRBt) and conducts periodic disaster Recovery drills for its technology infrastructure to ensure the availability of critical services in the event of a disaster. in order to keep abreast of the security best practices, the Bank participates in meetings conducted by ciSo Forum and data Security council of india.
a well-documented Board approved information security policy is in place. the Bank has a robust Business continuity and disaster Recovery plan that is periodically tested to ensure that it can meet any operational contingencies.
internal capital adequacy assessment process (icaap)
the Bank has a structured management framework in the internal capital adequacy assessment process (icaap) to identify, assess and manage all risks that may have a material adverse impact on its business/ financial position/ capital adequacy. The ICAAP framework is guided by the Bank’s Board approved ICAAP policy. the Bank designed an initial framework for enterprise Risk management (eRm) which sought to move away from silo-based risk approach to a comprehensive and holistic approach to risk management. the framework is designed around Risk adjusted Return on capital (RaRoc) based decision-making; a significant departure from the commonly used accounting-based performance review. The same is expected to be operationalised in the ensuing financial year.
63