Annual Report 2012 - National Savings Bank

130ASSESSING AND MANAGING OUR RISK FACTORSRISK MANAGEMENTrisk culture and behaviour towardsoperational risk management andunderstanding the Bank’s inherentrisks through the operational riskmanagement process which leads tomaking sound decisions in order toachieve the objectives of the Bank.Further the Bank’s Operational RiskManagement Function is guided bythe Board approved Integrated RiskManagement Policy of the Bank.Internal Audit, Risk Management andCompliance function for provisionof exchanging relevant information,identifying and the reporting of theoperational risks. The audit concernson risk & compliance is taken up at theBoard Audit Committees (BAC).Data CollectionOperational Risk Reporting & Monitoring StructureRisk Identification / Assessment /MeasuringReporting /Decision MakingEstablishing an operational riskmanagement process and monitoringare the responsibilities of the RiskManagement Division (RMD) whilethe Compliance and Audit Divisionsare responsible for overlooking theoperational risks in the Bank.The Bank accepts the fact thatInternal Audit, Risk Managementand Compliance functions shouldhave a formal status within the Bankto give them the appropriate standing,authority and independence whilesharing the management of operationalrisk jointly. A close co-operationhas already been established amongOperationalDivisionsOperationalDivisionsincludingCompliance &RMDRMD• Internal Control Design and Assessment• Loss event data tracking and analysis• Issue Management and Remediation• Scenario Analysis• Capital Charge calculation• Identication of duties andresponsibilities of operations• Development of Organisation Structure• Operational improvementsCompliance• Corporate Governance• KYC and Due Diligence• Transaction Monitoring• Regulatory Reporting(CBSL, STR, FTR etc)• Compliance AuditInternal AuditRisk based internal auditingInvestigation, IT system audit, Head OfceAudit - Branch Audit, Functional Audit,Transaction Audit, etcERMCECCBACIRMCIRMCBoard ofDirectorsBoard ofDirectorsBoard of DirectorsNATIONAL SAVINGS BANK . ANNUAL REPORT 2012