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ROLES OF THE BOARD OF DIRECTORS
k) Review and approve changes/amendments to
The Board of Directors’ role as it relates to risk manage- the risk management framework;
ment, credit, market, compliance, operational, reputational
and strategic risks. l) Review and approve risk management
procedures and control for new products and
Specific roles in these areas are further defined below: activities; and

GENERAL m) Periodically receive risk reports from
management highlighting key risk areas, control
a) Develop a formal enterprise-wide risk manage- failures and remedial actions taken by
ment framework; management.

b) Review and approve the establishment of a risk
management function that would independently CREDIT RISK
identify, measure, monitor and control risks
inherent in all risk-taking units of the Bank; a) Approve the Bank’s overall risk tolerance in
relation to credit risk based on the
c) Ratify the appointment of qualified officers to recommendation of the Chief Risk Officer;
manage the risk management function;
b) Ensure that the Bank’s overall credit risk
d) Approve and periodically review the Bank’s risk exposure is maintained at prudent levels and
strategy and policies; consistent with the available capital through
quarterly review of various types of credit
e) Approve the Bank’s risk appetite and monitor the exposures;
Bank’s risk profile against this appetite;
c) Ensure that top management as well as
f) Ensure that the management of the Bank has an individuals responsible for credit risk
effective ongoing process to identify risk, management possess the requisite expertise
measure its potential impact and proactively and knowledge to accomplish the risk
manage these risks; management function;

g) Ensure that the Bank maintains a sound system d) Ensure that the Bank implements a sound
of risk management and internal methodology that facilitates the identification,
control with respect to: measurement, monitoring and control of credit
risk;
• Efficiency and effectiveness of
operations e) Put in place effective internal policies, systems
• Safeguarding of the Bank’s assets and controls to identify, measure monitor, and
(including information) control credit risk concentrations.
• Compliance with applicable laws,
regulations and supervisory f) Ensure that detailed policies and procedures for
requirements credit risk exposure creation, management
• Reliability of reporting and recovery are in place; and
• Behaving responsibly towards all
stakeholders g) Appoint credit officers and delegate approval
authorities to individuals and committees.
h) Ensure that a systematic, documented assess-
ment of the processes and outcomes
surrounding key risks is undertaken at least MARKET RISK
annually;
a) Define the Bank’s overall risk appetite in relation
i) Ensure that management maintains an to market risk;
appropriate system of internal control and review
its effectiveness; b) Ensure that the Bank’s overall market risk
exposure is maintained at levels consistent
j) Ensure risk strategy reflects the Bank’s tolerance with the available capital;
for risk;

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Annual Report & Accounts 2017