Page 69 - 2021 ANNUAL REPORT draft

Guaranty Trust Bank (Gambia) Limited has a functional Risk Management Framework that is responsible
for ongoing identification, measurement and monitoring, and subject to risk limits and other controls. This
process of risk management is critical to the Bank’s continuing profitability and each individual within the
Bank is accountable for the risk exposures relating to his or her responsibilities. The Bank is exposed to the
following risks:

• Credit Risk;
• Liquidity Risk;
• Market Risk.

Other key risks faced by the bank as a result of its existence and operations include operational risks,
settlement risks, reputational and strategy risks.

Risk Management Philosophy

The risk management philosophy of the Guaranty Trust Bank (Gambia) Limited is drawn from its mission
and vision statements and seeks to achieve maximum optimization of the risk – return trade off, while
ensuring strong commitment to the following key indices:

• Excellent service delivery across business segments;
• Sound performance reporting (financial and non-financial);
• Sound corporate governance;
• Consistent appreciation in shareholders’ value.

Guaranty Trust Bank (Gambia) Limited will continue to adhere to the following risk principles to perform consistently on
the above stated indices:

• The Bank will not take any action that will compromise its integrity;
• Sound performance reporting (financial and non-financial);
• The Bank will adhere to the risk management practice of identifying, measuring, controlling and
reporting risks.

Risk control will not constitute an impediment to the achievement of the Bank's Strategic objectives. The
Bank will always comply with all government regulations and embrace global best practices. The Bank will
only assume risks that fall within its risk appetite with commensurate returns.

Risk Management Framework

The Bank’s risk management policies are established to identify and analyze the risks faced by the Bank,
to set appropriate risk limits and controls, to monitor risks and adherence to limits. This policy is subject to
review at least once a year. More frequent reviews may be conducted in the opinion of the Board, when
changes in laws, market conditions or the Bank’s activities are material enough to impact on the continued
adoption of existing policies. The Bank, through its training and management standards and procedures,
aims to develop a disciplined and constructive control environment, in which all employees understand their
roles and obligations.
The Board of Directors has overall responsibility for the establishment and oversight of the Bank’s risk
management framework via its committees – The Board Risk Committee, Board Credit Committee, and
Board Audit Committee. These committees are responsible for developing and monitoring risk policies in
their specified areas and report regularly to the Board of Directors on their activities. All Board committees
have both executive and non-executive members.

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Guaranty Trust Bank (Gambia) Limited Financial Statements December 2021