Risk Management - Public Bank | PBeBank.com

publicbank • 39
INDEPENDENT RISK MANAGEMENT AND CONTROL FUNCTIONS
Risk Management Division
• Risk Management Division is independent of the
business and trading units.
• Develops and maintains sound risk management
policies and procedures.
• The Risk Management Division is made up of 3
departments namely Assets & Liabilities Management
Department (“ALMD”), Credit Risk Management and
Product Evaluation Department (“CRMPED”) and
Operational Risk Management Department (“ORMD”).
• The ALMD’s primary role is to assist the ALCO in the
management of market risk and interest rate risk
including reviewing the balance sheet structure and
recommending appropriate strategies to enhance or
optimise risk-return.
• The CRMPED’s primary role is to assist the CRMC in
the management of credit risk including reviewing riskreturn
of products and services, credit concentration
and portfolio credit risk.
• The ORMD’s primary role is to assist the ORMC in the
management of operational risk including ensuring
operational risk management policy manuals,
processes, procedures and practices are in place.
Credit Administration
& Supervision Division
• Oversees the credit review function
and ensures reviews are conducted
according to the review guidelines.
• Monitors the quality of loans
portfolio and quality of credit
decisions through the credit review
process.
• Implements credit control measures
to prevent non-performing loans
(“NPLs”).
• Closely monitors and implements
follow-up of weak loan accounts.
• Rehabilitates and restructures nonperforming
and close attention
accounts to expedite recovery and
prevent emergence of new NPLs.
Operations Control Department
• Operations Control Department is
independent of Internal Audit
Division.
• Carries out pre-emptive measures
and control programmes to prevent
potential operational control lapses.
• Monitors the control processes and
operational activities of the
business units.
• On-site inspection including
deployment of managerial personnel.
• Conducts training programmes to
enhance staff knowledge on
management of operational risk.
Internal Audit Division
• Monitors and evaluates
business risk and internal
controls.
• Monitors adherence to
controls and policies.
• Conducts audits of all
units and operations.
• Submits the results of the
audits to the Audit
Committee for its review.