Risk management Report
Risk Management is committed to ensure the sustainability and achievement of the Bank’s Vision and Mission and be a force of positive change whilst remaining committed to the key risk principles.The Bank’s fundamental approach to Risk Management is to ensure that both value preservation and value creation is promoted through the prudent and consistent adoption of the Risk Culture Statement.
Qualified and experienced team members lead the Risk Teams of the following areas, supported by a Risk Analytics Team:
Credit Risk is the risk of loss arising from a client or counterparty failing to fulfil its financial obligations. It primarily arises from wholesale and retail loans and advances.
The Board Credit Committee (BCC) sets the Credit Strategy and approves the Credit Policy. BCC monitors the Credit Risk to be within the Risk Appetite, provisions target and reacts proactively to any operating environment changes.
Market risk exposure for different types of transactions is managed within risk limits and guidelines approved by the Board and monitored via ALCO which reports to the Board Risk Management Committee (BRMC). Risk Analytics Team monitors and reports on limit governance.
The management of operational risk within Bank One is aligned to the enterprise-wide risk management approach in accordance with the Basel Committee’s guidance on “Sound Practice for the Management and Supervision of Operational Risk” and the Bank of Mauritius Guidelines on Operational Risk Management.
Reinforcement of resilience to the risk of severe disruptions caused by internal failures or external events is a key focus area for the Bank. The Bank is fully equipped with a modern Disaster Recovery (DR) site as per best practice standards.
In terms of independence, the Compliance function has been set up in line with the BOM Guideline on Corporate Governance and reports into BRMC. In line with regulatory requirements, the Bank adopts a risk-based approach to Compliance Risk Management. The aim of the Compliance function is to shield the organization from legal/regulatory sanctions as well as financial/reputation losses.
In view of the importance of financial crime in the industry, the Bank uses an automated monitoring tool for AML and sanctions ongoing monitoring. Dedicated and qualified team members have been assigned to a specialised team with appropriate segregation of duties. The regulatory landscape is frequently scanned to ensure compliance to regulations and laws.