Page 80 - GTBANK GAMBIA ANNUAL REPORT 2021

Monthly Operational Risk Status reports circulated to
management.
• Taxation risk
• Business Continuity Management (BCM) in Line Taxation risk refers to the risk that new taxation laws will
With BS 25999 Standards adversely affect the Bank and/or the loss as a result of
noncompliance with tax laws. The taxation risk is
To ensure reliance of our business to any disruptive managed by monitoring applicable tax laws, maintaining
eventuality, the Bank has in place a robust Business operational policies that enable the Bank to comply with
Continuity Plan (BCP) which assures timely resumption of taxation laws and, where required, seeking the advice of
its business with minimal financial losses or reputational tax specialists.
damage and continuity of service to its customers, 5. Capital management Regulatory capital
vendors and regulators 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:
• Compliance and Legal Risk Management

Tier 1 capital includes ordinary share capital, share
Compliance Risk Management involves close monitoring premium, retained earnings, translation reserve and non-
of KYC compliance by the bank, escalation of audit non- controlling interests after deductions for goodwill and
conformances, Complaints Management and observance intangible assets, and other regulatory adjustments
of the Bank's zero tolerance culture for regulatory relating to items that are included in equity but are treated
breaches. It also entails an oversight role for monitoring differently for capital adequacy purposes.
adherence to regulatory guidelines and global best
practices on an on-going basis. Tier 2 capital includes qualifying subordinated liabilities,
collective impairment allowances and the element of fair

value reserve relating to unrealized gains on equity
• Legal Risk Management involves the monitoring instruments classified as FVOCI.
of litigations against the bank to ascertain likely
financial or non-financial loss exposures. Investments in unconsolidated subsidiaries and
associates are deducted from Tier 1 or Tier 2 capital in
• Occupational Health and Safety Procedures and arriving at the regulatory capital. Various limits are applied
Initiatives 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
Global best practices for ensuring the health and safety of
all staff, customers and visitors to the bank are advised, allowances that may be included as part of tier 2 capital
reported to the relevant stakeholders and monitored for (1.25% of risk assets and hybrid instruments – convertible
implementation. As a result, the following are conducted bonds). Banking operations are categorized mainly as
and monitored: Fire Risk Assessments, Quarterly Fire trading book or banking book, and riskweighted assets
Drills, burglaries and injuries that occur within the Bank's are determined according to specific requirements that
premises. seek to reflect the varying levels of risk attached to the
Reputational Risk Management assets and off-financial position exposures.

The Bank’s policy is to maintain a strong capital base so
Guaranty Trust Bank considers reputational risk to be the as to maintain investor, credit and market confidence and
current and prospective adverse impact on earnings and to sustain future development of the business. The impact
capital arising from negative public opinion. It measures of the level of capital on shareholders’ return is also
the change in perception of the bank by its stakeholders. recognized and the bank recognizes the need to maintain
It is linked with customers' expectations regarding the a balance between the higher returns that might be
bank's ability to conduct business securely and possible with greater gearing and the advantages and
responsibly. security afforded by a sound capital position.
A detailed template with internal and external factors that The Bank and its individually regulated operations has
might impact the bank adversely is used to monitor the complied with all externally imposed capital
bank's exposure to reputational risk. All adverse trends requirements throughout the year. There have been no
Annual Report 2021
identified are reported to relevant stakeholders for timely material changes in the Bank’s management of capital
redress. during the year.

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