MITIGATION • Maintain a robust and prudent credit risk policy and limits to ensure credit default and losses are within the approved risk appetite. • Credit evaluation by the business is independently reviewed and constructively challenged by credit analysts prior to submission to Management and Board Committees for approval. • Independent post-credit review and post-mortem analysis is conducted regularly to assess and ensure asset quality standards are maintained. • Proactive and vigilant management at account level to prevent deterioration in asset quality. This includes granular portfolio risk reviews and monitoring. • All exposure and non-compliances, including emerging risk, are reported to Management & Board Committees. MITIGATION • Maintain a robust market risk policy and limits based on best practices. • Proactive monitoring, analysis and reporting to ensure that management of market risk is within the approved risk appetite. • Proactive review of all market risk parameters in line with the Group’s business strategy and current economic environment. • Market Risk controls are reviewed regularly to ensure effective management of the risk. • Conduct regular and ad-hoc stress testing to identify possible risks and to ensure the Group’s exposure remain in accordance with the Group’s risk tolerance. • All exposures and non-compliances are reported to Management & Board Committees promptly. 1 2 CREDIT RISK MARKET RISK DEFINITION Risk of loss of revenue and/or principal arising from the inability of an obligor to fulfil its financial obligation in accordance with agreed terms. DEFINITION Risk of losses in on- and off-balance sheet positions arising from adverse movements in market prices/ rates. Integrated Report 2022 48 STRATEGIC REVIEW Key Risks and Mitigations
RkJQdWJsaXNoZXIy NDgzMzc=