Page 106 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
A a o nts are in tho sands o hana edis n ess otherwise stated
Financia ris anage ent
he Ban ’s activities expose the usiness to ris s. hese ris s are mana ed in a tar eted manner. ey ris s arisin rom core unctions are identified and measured to acilitate mana in and determinin ris positions and capital allocations. he Ban has exposure to the ollowin types o ris s rom its use o financial instruments credit ris , li uidity ris and mar et ris s. he Ban continues to assess its overall ris mana ement ramewor and overnance structure.
Ris anage ent ra ewor
he Board o Directors has overall responsi ility or the esta lishment and oversi ht o the Group’s ris mana ement ramewor . he Audit and Ris ana ement Committee o the Board is responsi le or developin and monitorin the Group’s ris mana ement policies over specified areas.
he Committee is complemented y the Ris ana ement unit in co ordinatin the process o monitorin and reportin o ris s in the Group.
he Group has adopted the concept o Enterprise wide Ris ana ement ER . he ER is a structured approach to identifying opportunities, assessing the risk inherent in these opportunities and managing these ris s proactively in a cost effective manner. hese include the
• Esta lishment o the Group’s ris philosophy, culture and o ectives
• Esta lishment o the Group’s ris mana ement overnance ramewor
• Articulation o the Group’s ris mana ement to sta eholders and development o an action plan to
meet their ris mana ement expectations and
• Esta lishment o policies and procedures to identi y, measure, monitor, report and control ris s the
Group aces.
he Group’s ris mana ement ramewor places si nificant emphasis on
• Esta lishin a stron , independent Ris ana ement unction to champion, coordinate and monitor the enterprise wide ris methodolo y across the Ban and its su sidiaries
• ormally assi nin accounta ility and responsi ility or ris mana ement and
• Brea in the Ban ’s ris universe down into mana ea le, tailored, well resourced and specialised
components.
redit ris anage ent
Credit ris is the ris o financial loss to the Group i a customer or counterparty to a financial instrument ails to meet its contractual o li ations, and arises principally rom the Group’s loans and advances to customers and other an s and investment securities. or ris mana ement reportin purposes, the Group considers all elements o credit ris exposure.
he Group structures the levels o credit ris it underta es y placin limits on the amount o ris accepted in relation to one orrower, or roup o orrowers, and to industry se ments. Such ris s are monitored on a revolvin asis and su ect to annual or more re uent review. imits on the level o credit ris y product and industry sector are approved y the Board o Directors.
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