Page 86 - ACCESS BANK ANNUAL REPORTS_eBook

ment of mitigation, recovery and business continuity plans; The Incident Response Protocol consists of five key com-
the processes for plan implementation, including training ponents: Incident Detection and Preliminary Assessment,
and awareness. Finally, the plan is continually reviewed for Activation of the Incident Management Team, Evaluation
improvements. and Containment of disaster impact, Invocation of Recov-
ery Plan/ Corrective Measures, Tracking recovery progress
and status of incident.

STRATEGIC RISK MANAGEMENT

In Access Bank, we define Strategic Risk as the process for The strategic risk management function supports the
identifying, assessing and managing risks and uncertain- Board and senior management in managing strategic risks
ties, affected by internal and external events or scenarios and other related processes in the Bank.
that could inhibit the Bank’s ability to achieve its strategy
and strategic objectives with the ultimate goal of creating Access Bank, in compliance with the Basel II principles, uses
and protecting shareholder and stakeholder value. It is a Internal Capital Adequacy Assessment Process in assess-
primary component and necessary foundation of our En- ing its Strategic Risk. To this end, it sees Strategic Risk as
terprise Risk Management. material risk that could result when the Bank fails to meet its
performance targets or lacks sufficient cashflow to main-
Strategic risk management, therefore, is defined as cur- tain its operations that may result in a negative impact on
rent or prospective risk to earnings and capital arising from the Bank’s operating result and financial condition.
adverse business decisions, improper implementation of
decisions or lack of responsiveness to changes in the busi- This strategic risk could stem from adverse global econo-
ness environment. It can also be defined as the risk asso- my, regulatory actions, improper analysis that can impact
ciated with future business plans and strategies, including the implementation of decisions, lack of responsiveness to
plans for entering new business lines, expanding existing industry changes, inability to respond promptly to business
services through mergers and acquisitions, and enhancing opportunities, ineffective change management and com-
infrastructure. munication process as well as the nature and activities of
competitors.
A well-defined structure for managing strategic risk exists
in Access Bank. It provides a process for the Bank to identify Based on the foregoing, the Bank estimates a capital charge
and assess potential risks posed by its strategic plan, and figure in relationship to its actual gross earnings to cover its
consider whether they have adequate capacity to with- strategic risk exposure, in line with its tolerance level.
stand the risks. Strategic risk management involves vari-
ous organizational functions within the Bank. The following The measures and controls it has put in place include the
principles govern the Bank’s strategic risk management: following:

The Board and Senior Management are responsible for Strategic plans are approved and monitored by the Board.
Strategic Risk Management and oversee the effective Regular environmental scan, business strategy sessions
functioning of the strategic risk management framework; and workshops are set up to discuss business decisions,
The functional units (i.e. the units which carry out busi- close monitoring to ensure that strategic plans are prop-
ness or operational functions) assists the Board and Senior erly aligned with the business model, regular performance
management in formulating and implementing strategies, review by Executive Management and business plans are
providing input to the strategic planning and management approved by the Board. The Bank also maintains a well-de-
processes; and as well as implementing the strategic risk fined succession plan, proper monitoring and well defined
management framework. structures to align its activities to international best prac-
tices.

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Annual Report & Accounts 2017