2012 Annual Report & Financial Statements - UBA Plc

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Notes to the consolidated and separate financial statements
continued …
The Board Risk Management Committee has direct oversight for the Bank’s overall risk management framework. The Board Credit Committee
considers and approves large exposure underwriting decisions within its authority and recommends those above its limit to the Board for
consideration. The Board Audit Committee assists the Board with regard to internal controls, audit assessments and compliance matters.
A list of various Board committees and their assigned responsibilities is contained in the corporate governance report.
Management Committees
Key Management Committees include:
Executive Management Committee (EMC)
The EMC is responsible for the following, among others, and shall be accountable to the Board:
– formulating and executing strategy once approved by the Board;
– overall performance of the Group;
– managing the Group’s risks; and
– day-to-day oversight for the Group.
All non-credit product approvals must go to the EMC who shall review and approve or recommend for approval to the appropriate Board
Committees in line with the Bank’s advised approval limits. Above the EMC approval limits, non-credit products are approved by the Board’s
Finance and General Purpose Committee (F&GPC).
All new business activity irrespective of capital commitment must be approved by the F & GPC through the EMC.
Executive Credit Committee (ECC)
The Committee’s main objective is to develop and maintain a sound credit risk portfolio for the Group and to oversee the development and
deployment of credit risk practices across the Group.
Its principal activities and functions are:
– set frameworks and guidelines for credit risk management for the Group;
– review and recommend all credit-related policies for the Group to the BCC for approval;
– monitor implementation and compliance with credit policy paying particular attention to the following:
– credit concentration;
– credit portfolio quality;
– review credit requests and recommend those above its limit to BCC for approval;
– ensure the Group’s non-performing Loans portfolio is within the approved ratio; and
– review all major credit audit issues with a view to adopting learning points for enhancement to the credit process.
Group Asset and Liability Committee
The Group Asset and Liability Committee (GALCO), is a sub-committee of the EMC that has responsibility for managing UBA Group’s balance
sheet. This committee manages traded and non-traded market risks as well as steering the implementation of Basel II requirements for market
risk.
Annual Report 2012