The Case Study - Seylan Bank

74Seylan Bank PLC Annual Report 2009Way forward on Risk Management -Key Focus Areas of the BankThe following is a summary of the key areasfocused by the Bank for implementation during theyear 2010 onwards:• Further development of internal risk ratingframeworks.• Integration of frameworks through creditredesign initiatives.• Ongoing testing and validation of risk ratingsystems.• Calibration of probability of default.• Development of portfolio managementinformation system.• Building database of default data, loss data andrecovery data.• Measuring credit exposures accurately.• Analytics Engines that support BASEL II capitalrequirements and economic capital attribution.Each is a major project requiring crossfunctionalexpertise and deep skill sets. Projectsdriven via Steering Committee and project leadersare held accountable for project delivery.ConclusionRisk Management is an important function ofany organisation and more so in the case of afinancial institution because the ability to expandthe exposures is much more significant comparedto most other business entities. Seylan Bankrecognises the need for a sound and comprehensiverisk management framework and therefore hasintroduced a risk management framework that isbeing continuously improved and developed.