Annual Report 2012 - National Savings Bank

104ASSESSING AND MANAGING OUR RISK FACTORSRISK MANAGEMENTRisk Management requires anintegrated approach that interacts witha number of factors such as strategy,structure, policies and procedures,functions etc since all activities areinterrelated and interconnected inachieving the organisation’s goals. Acohesive approach of management,development of an atmosphere forpositive cultural and organisationalchanges, policy & structure based systemsand procedures, risk identication andreporting etc are the pillars of achievingthe establishment of an Integrated RiskManagement (IRM) framework in theBank. Further, assessment of potentialrisks for an organisation at every leveland then aggregating the results at thecorporate level to facilitate prioritysetting and improved decision-makingare fundamental for IRM. Integratedrisk management should focus onoptimisation of corporate goals at anacceptable risk level through supportactivities that foster innovation, optimaloperating results and stability to sustainduring turbulent times. Integratedrisk management should also enablethe regulators to identify an entity asa responsible organisation focusingon long term system stability andcompliance with national interests.Board of DirectorsRisk Management StructureThe Bank has been improving itseffort for establishing a cohesive riskmanagement structure to ensureadequate oversight due to the natureand complexity of and risk inherent inthe Bank’s operations. The principalresponsibilities set out below extendthroughout the Bank.IRMC - Integrated RiskManagement CommitteeBAC - Board Audit CommitteeERMC - Executive RiskManagement CommitteeAMD - Asset Management DivisionRMD - Risk Management DivisionORM/Rep - Operational ManagementRepresentativeMO - Middle OfceCRMU - Credit Risk ManagementUnitIRMCBACGM/CEOERMCOtherDivisionsAMD Credit RMDComplianceUnitAuditDivisionORM/Rep MO CRMUStrategicRiskCreditRiskMarketRiskOperationalRiskNATIONAL SAVINGS BANK . ANNUAL REPORT 2012