Risk Management
Governance Structure by Risk Type
Capital and Liquidity Risk
  • Monitoring of liquidity position on a daily/weekly/monthly basis. This entails forecasting of future cash inflows/outflows and ensuring that the Bank can meet the required outflows;
  • Regular liquidity stress testing conducted under a variety of scenarios, covering both normal and more severe market conditions with well defined triggers and suggested action; and
  • Ensuring regular compliance with the liquidity ratios such as “Advances to stable resources ratio” stipulated by the Central Bank of UAE. Whilst the Central Bank of UAE allows a maximum of 1:1, the Bank has set a stricter internal ratio.

Retail and Wholesale Banking Credit Risk
  • Defining and ultimately deciding on the Bank’s tolerance for credit risk and the level of returns it expects to achieve for incurring various credit risks;
  • Ensuring the development and implementation of the Credit Risk Strategies relevant to each business line, and the policies and procedures for identifying, measuring, monitoring, and controlling Credit Risk; and
  • Ensuring that Product Development is subject to adequate procedures and controls before being introduced or undertaken.

Market Risk
  • Establishment of a comprehensive market risk policy framework;
  • Independent measurement, monitoring and control of market risk; and
  • Setting up, approval and monitoring of limits.

Operational Risk
  • Ensure compliance with regulatory and other legal requirements;
  • Documentation of controls and procedures;
  • Periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identified;
  • Reporting of operational losses and proposed remedial action; and
  • Development of contingency plans.