Full annual report - African Bank - Investoreports

Risk universe and supporting structures
All risks facing the greater ABIL group are reviewed on an annual basis and the major groups of risks (before and after the
application of mitigating controls) are set out and described below. Management of the two business units and the ABIL
board are satisfied that these risks are being adequately managed to ensure the desired outcome is achieved. The diagram
below depicts the risk universe faced by the group as well as the appropriate level of roles and responsibilities associated to
the specific risk.
Risk management – roles and responsibilities
ABIL believes that risk management is fundamental to
effective corporate governance and the development and
maintenance of a sustainable business. ABIL’s risk
methodology and philosophy allows the various business
units to ensure business success with a measured balance
between risk and reward.
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Group risk and
capital
management
committee
Accounting and
taxation risk
Group audit
committee
Internal audit, external audit and group risk management services
Liquidity risk Market risk Business continuity risk
Compliance risk Capital risk Operational risk Reputational risk
New business risk Interest rate risk
Board of directors
Board committees Management committees
Group ALCO
committee
Risk universe
Information
technology risk
Information
technology
steering
committee
Group strategy
and group
operational credit
committee
People and
transformation risk
Social and
environmental risk
Credit risk Regulatory risk
ABIL firmly utilises and applies a holistic and integrated risk
management approach. Included in the risk management
mechanisms is the principle of “levels of defence”. Business
units, group risk management services together with internal
and external audit participate in the holistic approach to risk
management.