Page 68 - ACCESS BANK ANNUAL REPORTS_eBook

BUSINESS REVIEW

RISK

MANAGEMENT

The year 2017 was a combination of opportunities
and a series of uncertainties on the global business
space. Macroeconomic headwinds continued to cre-
ate multiple emerging risks, forcing risk managers to del-
icately navigate the risk minefields across varying business
spheres. Access Bank has maintained a conservative and
consistent approach to risk through application of embedded
enterprise-wide risk management. Our risk management prac-
tices are hinged on carefully designed innovative approaches for
a sustainable future. We have integrated sustainable management
practices into every aspect of our business. Our comprehensive risk
management framework is set up to ensure that we protect depositors’
funds, lend responsibly, support economies and protect our planet. Our
well defined risk appetite has been carefully aligned to our strategy and our
risk management culture has helped to deliver long-term shareholder returns
in a sustainable manner.

Nigeria experienced foreign currency shortages for most part of the first half of the
year, stemming from relatively lower oil production and commodity prices. The per-
sistence of foreign exchange liquidity challenges resulted in major complications for the
economy as a whole, impacting productive capacity as businesses struggled to source
necessary raw materials and other components. The combination of multiple threats from
the operating environment in the year affected the banking sector in the form of sluggish
credit growth, asset quality pressures, and weakening capitalization. All of these prompted

68 Access BAnk Plc
Annual Report & Accounts 2017