Risk Committee

The principal role of the Risk Committee is to review the bank’s risk exposure under different products. This encompasses credit, market, operation, foreign exchange positions, asset & liabilities, and capital adequacy. Responsibilities include:

• Review of existing policies, formation of risk management policies and framework, development of a robust risk management strategy and risk tolerance.
• Reviewing the adequacy of risk management policies and framework in identifying, measuring, monitoring, and controlling risk and the extent to which these are operating effectively.
• Reviewing infrastructure, resources, and systems (including the appointment of skilled staff) that are in place for risk management and ensuring that the staff responsible for implementing the risk management system performs those duties independent of the bank’s risk-taking activities.
• Review periodic reports (MIS) on risk exposure, composition of risk portfolio, and review mechanisms to ensure that these reports adequately cover risk reporting.
• Review risk methodologies for measuring and managing risks arising from the bank’s business and operational activities.
• Review the adequacy of broad-based risk limits and ensure that the risk limits are appropriate for the bank’s business.
• Review the contingency plan for dealing with various extreme internal/external disasters.
• Review new products that are fundamentally different from the bank’s existing products/services.
• Review and keep current the appropriateness of the risk measurement methodologies.