Page 79 - GTBank Annual Report 2020 eBook

Operational Risk Status reports circulated to in perception of the bank by its stakeholders. It
management.
• Business Continuity Management (BCM)
in Line With BS 25999 Standards
To ensure reliance of our business to any
disruptive eventuality, the Bank has in place a
robust Business Continuity Plan (BCP) which
assures timely resumption of its business with
minimal financial losses or reputational damage
and continuity of service to its customers,
vendors and regulators
• Compliance and Legal Risk
Management
Compliance Risk Management involves close
monitoring of KYC compliance by the bank,
escalation of audit non-conformances,
Complaints Management and observance of the
Bank's zero tolerance culture for regulatory
breaches. It also entails an oversight role for
monitoring adherence to regulatory guidelines
and global best practices on an on-going basis.
• Legal Risk Management involves the
monitoring of litigations against the bank
to ascertain likely financial or non-
financial loss exposures.
• Occupational Health and Safety
Procedures and Initiatives
Global best practices for ensuring the health and
safety of all staff, customers and visitors to the
bank are advised, reported to the relevant
stakeholders and monitored for implementation.
As a result, the following are conducted and
monitored: Fire Risk Assessments, Quarterly
Fire Drills, burglaries and injuries that occur
within the Bank's premises.
Reputational Risk Management
Guaranty Trust Bank considers reputational risk
to be the current and prospective adverse
impact on earnings and capital arising from
negative public opinion. It measures the change
Guaranty Trust Bank Gambia Limited
is linked with customers' expectations regarding
the bank's ability to conduct business securely
and responsibly.
A detailed template with internal and external
factors that might impact the bank adversely is
used to monitor the bank's exposure to
reputational risk. All adverse trends identified
are reported to relevant stakeholders for timely
redress.
• Taxation risk
Taxation risk refers to the risk that new taxation
laws will adversely affect the Bank and/or the loss
as a result of noncompliance with tax laws. The
taxation risk is managed by monitoring applicable
tax laws, maintaining operational policies that
enable the Bank to comply with taxation laws and,
where required, seeking the advice of tax
specialists.
5. Capital management
Regulatory capital
The Bank’s regulator, the Central Bank of The
Gambia sets and monitors capital requirements
for the Bank. The regulatory capital is analyzed
into two tiers:
Tier 1 capital includes ordinary share capital,
share premium, retained earnings, translation
reserve and non-controlling interests after
deductions for goodwill and intangible assets,
and other regulatory adjustments relating to items
that are included in equity but are treated
differently for capital adequacy purposes.
Tier 2 capital includes qualifying subordinated
liabilities, collective impairment allowances and
the element of fair value reserve relating to
unrealized gains on equity instruments classified
as FVOCI.
Investments in unconsolidated subsidiaries and
associates are deducted from Tier 1 or Tier 2
capital in arriving at the regulatory capital.
Various limits are applied to elements of the
capital base. The qualifying tier 2 capital cannot
exceed tier 1 capital. There are also restrictions
on the amount of collective impairment
allowances that may be included as part of tier 2 Annual Report 2020
www.gtbankgambia.com 77