Page 54 - GTBank Annual Report 2020 eBook

4. Financial Risk Management measuring, controlling and reporting
risks.
a. Introduction and Overview
Risk control will not constitute an impediment to
Guaranty Trust Bank (Gambia) Limited has a the achievement of the Bank's Strategic
functional Risk Management Framework that is objectives. The Bank will always comply with all
responsible for ongoing identification, government regulations and embrace global best
measurement and monitoring, and subject to risk practices. The Bank will only assume risks that
limits and other controls. This process of risk fall within its risk appetite with commensurate
management is critical to the Bank’s continuing returns.
profitability and each individual within the Bank is
accountable for the risk exposures relating to his Risk Management Framework

or her responsibilities. The Bank is exposed to the The Bank’s risk management policies are
following risks: established to identify and analyze the risks faced
by the Bank, to set appropriate risk limits and
• Credit Risk; controls, to monitor risks and adherence to limits.
• Liquidity Risk; This policy is subject to review at least once a
• Market Risk.
year. More frequent reviews may be conducted in
the opinion of the Board, when changes in laws,
Other key risks faced by the bank as a result of market conditions or the Bank’s activities are
its existence and operations include operational material enough to impact on the continued
risks, settlement risks, reputational and strategy adoption of existing policies. The Bank, through
risks. its training and management standards and
procedures, aims to develop a disciplined and
Risk Management Philosophy constructive control environment, in which all
employees understand their roles and
The risk management philosophy of the Guaranty obligations.
Trust Bank (Gambia) Limited is drawn from its The Board of Directors has overall responsibility
mission and vision statements and seeks to for the establishment and oversight of the Bank’s
achieve maximum optimization of the risk – return risk management framework via its committees –
trade off, while ensuring strong commitment to The Board Risk Committee, Board Credit
the following key indices: Committee, and Board Audit Committee. These
committees are responsible for developing and
• Excellent service delivery across monitoring risk policies in their specified areas
business segments;
• Sound performance reporting (financial and report regularly to the Board of Directors on
their activities. All Board committees have both
and non-financial);
• Sound corporate governance; executive and non-executive members.
The Board Committees are assisted by the
• Consistent appreciation in shareholders’ various Management Committees in identifying
value. and assessing risks arising from day to day

Guaranty Trust Bank (Gambia) Limited will activities of the Bank. These committees are:

continue to adhere to the following risk principles The Management Credit Committee;
to perform consistently on the above stated Criticized Assets Committee;
indices: Asset and Liability Management
Committee (ALMAC);
• The Bank will not take any action that will Management Risk Committee;
compromise its integrity;
• Sound performance reporting (financial Other Ad-hoc Committees.

and non-financial);
• The Bank will adhere to the risk These committees meet on a regular basis while
others are set up on an ad-hoc basis as dictated
management practice of identifying,
by the circumstances. Annual Report 2020

Guaranty Trust Bank Gambia Limited www.gtbankgambia.com 52