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RISK MANAGEMENT PROCESS
Group Strategy and Business Planning
(risk appetite Limits and Policy Setting)
Risk Risk and Control Management Monitoring Risk Risk Capital
Identification Assessments Actions Reporting Adjusted Allocation
Performance
Management
Group Oversight Systems and Tools
GROUP RISK OVERSIGHT APPROACH management as one of our strategic priorities. By setting
the business and risk strategy, we are able to determine ap-
Our risk governance framework, of which risk appetite propriate capital allocation and target setting for the Group
framework is a significant element, ensures the appropriate and each of our businesses.
oversight of and accountability for the effective manage-
ment of risk. Our oversight starts with the strategy setting All business units are required to consider the risk implica-
and business planning process. These plans help us articu- tions of their annual plans. These plans include analysis of
late our appetite for risk, which is then set as risk appetite the impact of the objectives on risk exposure. Throughout
limits for each business unit to work within. the year, we monitored business performance regularly fo-
cusing both on financial performance and risk exposure.
The Bank’s risk management function provides a central The aim is to continue the process of integrating risk man-
oversight of risk management across the Bank and sub- agement into the planning and management process and
sidiaries to ensure that the full spectrum of risks facing to facilitate informed decisions.
the Bank are properly identified, measured, monitored and
controlled in order to minimize adverse outcomes. Through ongoing review, the links between risk appetite,
risk management and strategic planning are embedded in
The Chief Risk Officer coordinates the process of moni- the business so that key decisions are made in the context
toring and reporting risks across the Bank. Internal Audit of the risk appetite for each business unit.
has the responsibility of auditing the risk management and
control function to ensure that all units charged with risk RISK APPETITE
management perform their roles effectively on a continu-
ous basis. Audit also tests the adequacy of internal control Risk appetite is an articulation and allocation of the risk ca-
and makes appropriate recommendations where neces- pacity or quantum of risk Access Bank Group is willing to ac-
sary. cept in pursuit of its strategy, duly set and approved by the
executive committee and the Board, and integrated into
our strategy, business, risk and capital plans. Risk appetite
STRATEGY AND BUSINESS PLANNING reflects the Group’s capacity to sustain potential losses
arising from a range of potential outcomes under different
Risk management is embedded in our business strate- stress scenarios.
gy and planning cycle as evidenced by the inclusion of risk
76 Access BAnk Plc
Annual Report & Accounts 2017
