Annual Report - Ahli United Bank

ahliunited.com

Annual Report - Ahli United Bank

CorporateGovernance (Contd.)The Group Risk Committee (GRC), reviews and manages the risk asset policies, approvals, exposures and recoveries related to credit,operational and compliance risks. It acts as a general forum for the discussions of any aspect of risk facing or which could potentiallyface AUB or its subsidiaries and affiliate banks resulting in reputational or financial loss to the Group. It also oversees the operation of theOperational Risk Sub-Committee and Group Special Assets Sub-Committee. It is chaired by the DGCEO- Risk, Legal & Compliance and hassix other members.The Group Operational Risk Sub-Committee (GORC) administers the management of operational risk throughout the AUB Group. It ischaired by the Group Head of Risk Management and has eight other embers.The Group Special Assets Committee (GSAC) is responsible for the management of the criticized and non-performing assets of the bank. Ithas responsibility for monitoring accounts downgraded to watch list and criticized asset status and ensuring that a focused and disciplinedrecovery strategy is adopted to maximize recoveries. It is chaired by DGCEO Risk, Legal & Compliance and has seven other members.The Management Committee (MC) is the senior collective management forum of AUB, the parent Bank, providing a formal framework foreffective consultation and transparent decision-making on cross-organisational matters. Appropriate checks and balances ensure the“four eyes” regulatory requirement is met as described under Quorum below. The Committee operates in a flexible way with a minimumof formality and a broad mandate encompassing both bank-wide and unit specific issues as determined by the GCEO & MD and its othermembers in relation to the business of Ahli United Bank’s business as a legal entity. It is chaired by the Sr. DGCEO-Banking Group and hassix other members.AUB Solo Assets and Liability Committee (ALCO) sets, reviews and manages the liquidity, market risk and funding strategy of AB Bahrainand reviews and allocates capacity on the balance sheet to achieve targeted return on capital, return on asset and liquidity ratios. It ischaired by Group Head Treasury and has six other members.ADDITIONAL GOVERNANCE MEASURESIn addition to the Board and management committee structures, the Board of Directors has approved a number of group policies tosupport clarity and consistency in the operations of the AUB Group. These policies, which are communicated to staff, cover issues such asthe prevention of money laundering, confidentiality, personal share dealing, communications, legal issues and human resources relatedissues. Underpinning these policies is the Group Code of Business Conduct which was introduced by the Board in 2005 to establishstandards of ethical business behaviour and personal conduct for the Bank’s Directors, its senior management (officers) and its employees.As a supporting governance measure, the Board is able to rely on the ongoing reviews performed by internal and external auditors on theAUB Group’s internal control functions. These reviews are conducted in order to identify any weaknesses, which then enables managementto immediately put remedial action plans in place. It is important to highlight that the AUB Group maintains adequate insurance coverageand contingency plans for systems failure including back-up systems with off-site data storage.The Board of Directors and management believe that these high standards of corporate governance will continue to enhance the AUBGroup’s performance and hence shareholder value over the long-term, as well as provide confidence to all shareholders, customers,regulators, rating agencies and current and future staff.28 AUB Annual Report 2009

More magazines by this user
Similar magazines