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Mr. Ying Chen, Manager, Postal Savings Bank of China

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Risk Management Mechanism<br />

Board <strong>of</strong> Directors<br />

Board <strong>of</strong> Directors Level<br />

President <strong>of</strong> the <strong>Bank</strong><br />

Committee <strong>of</strong> Risk<br />

Management<br />

Auditing<br />

Committee<br />

Under this risk<br />

management<br />

framework, PSBC has<br />

Headquarter<br />

Level<br />

Branch<br />

Level<br />

Committee<br />

<strong>of</strong> Risk<br />

Management<br />

Committee<br />

<strong>of</strong> Credit<br />

Reviews<br />

Committee<br />

<strong>of</strong> Assets &<br />

Liabilities<br />

Credit Risk<br />

Management<br />

Operational Risk<br />

Management<br />

Market Risk<br />

Management<br />

Liquidity Risk<br />

Management<br />

Management <strong>of</strong> Level-1 Branches<br />

Management <strong>of</strong> Level-2 Branches<br />

Management <strong>of</strong> Level-2 Branches<br />

※ Risk Management<br />

Department<br />

※ Legal and Compliance<br />

Department<br />

※ Audit Department<br />

※ Credit Business Dept.<br />

※ Treasury and Financial<br />

Markets<br />

※ Asset and Liability<br />

Department<br />

Outlet Risk <strong>Manager</strong><br />

<br />

<br />

<br />

<br />

basically completed<br />

risk management<br />

mechanism.<br />

established the<br />

organizational<br />

structure combining<br />

vertical management<br />

and horizontal<br />

instruction.<br />

developed a risk<br />

rating and managing<br />

procedure in line with<br />

reality <strong>of</strong> PSBC.<br />

reduced the number<br />

<strong>of</strong> cases as well as the<br />

amount involved in<br />

the cases year after<br />

year.<br />

Risk Management Framework<br />

7

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