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ENTERPRISE-WIDE RISK MANAGEMENT

Our eNterPrISe-WIDe rISK MaNageMeNt
reMaINS CuStOM-MaDe Risk strategies and policies are set by the Board of Direc-
tors of Access Bank. These policies, which define accept-
Helping our stakeholders achieve their ambitions lies at the able levels of risk for day-to-day operations as well as the
heart of our processes as we apply a bespoke risk man- willingness of Access Bank to assume risk, weighed against
agement framework in identifying, assessing, monitoring, the expected rewards, are detailed in the Enterprise-Wide
controlling and reporting the inherent and residual risks as- Risk Management (ERM) Framework, which is a structured
sociated with the pursuit of these ambitions and ensuring approach to identifying opportunities, assessing the risk in-
they are achieved the right way. We help in connecting our herent in these opportunities and actively managing these
customers to opportunities through our promise of speed, risks in a cost-effective manner. Specific policies are also in
service and security. place for managing risks in the different core risk areas of
credit, market, operation, liquidity, strategic, reputational
The Bank’s overall risk tolerance is established in the con- risks amongst others.
text of our earning power, capital and diversified business
model. The Bank’s organisational structure and business The role of the Group Chief Risk Officer in Access Bank
strategy is aligned with its risk management philosophy. remains pivotal as he has the primary responsibility for
ensuring the effective implementation of the ERM Frame-
As we navigate through new frontiers in a growth market in work of both the Bank and its subsidiaries. The Bank’s ERM
the ever-changing risk universe, proactive Enterprise-Wide Framework and amendments thereto require Board ap-
Risk Management Framework becomes even more critical. proval, whilst the Risk Management Division is responsible
We continue to push the frontiers of our overall risk profile for the enforcement of the Bank’s risk policy by constantly
through innovation for a sustainable future whilst remaining monitoring risk, with the aim of identifying and quantifying
responsive to the ever-changing risk universe. significant risk exposures and acting upon such exposures
as necessary.
Access Bank views and treats risk as an intrinsic part of
business and maintains a disciplined approach to its man- Risk management in Access Bank is part of our culture,
agement of risk. Its Group Risk functions remain dynamic and everyone, from the most junior officer to Executive
and responsive to the needs of stakeholders as it improves Management, is cognisant of the risk culture. Our officers
its focus on the inter-relationships between risk types. The approach every banking transaction with care, taking into
Bank uses periodic reviews of risk exposure limits and risk consideration the Bank’s acceptable risk appetite and our
control to position itself against adverse scenarios. This is stated risk behavior and culture.
an invaluable tool with which the Bank predicted and suc-
cessfully managed both the local and global recession To some institutions, risk is viewed as a threat or uncertain-
which continued to impact the macroeconomy. Market vol- ty, but to us, it goes beyond that. Risk to us, presents poten-
atility and economic uncertainty, are typically contained be- tial opportunities to grow and develop our business within
cause the Group regularly subjects its exposures to a range the context of our clearly articulated and Board-driven risk
of stress tests across a wide variety of products, currencies, appetite. Hence, our approach to risk management is not
portfolios and customer segments. limited to considering downside impacts or risk avoidance;
it also encompasses taking risk knowingly for competitive
The Bank’s risk management architecture, as designed, advantage backed by strong market and macro analytics
continued to balance corporate oversight with well-defined and scenario planning. Access Bank approaches risk, cap-
risk management functions which fall into one of three ital and value management robustly and we believe that our
categories where risk must be managed: lines of business, initiatives to date have positioned the Group at the leading
governance and control, and corporate audit. The Board of edge of risk management.
Directors and Management of the Bank are committed to
constantly establishing, implementing and sustaining test- RISK MANAGEMENT FRAMEWORK
ed practices in risk management to match those of leading All activities and processes of Access Bank involve the
international banks. We are convinced that the long-term identification, measurement, evaluation, acceptance and
sustainability of our Group depends critically on proper management of risk or combinations of risks. The Board,
governance and effective management of our business. As advised by the various Board and Management Risk Com-
such, risk management occupies a significant position of mittees, requires and encourages a strong risk governance
relevance and importance in the Bank. culture which shapes the Group’s attitude to risk. We be-

70 Access BAnk Plc
Annual Report & Accounts 2017