Annual Report 2012 - National Savings Bank

148BRANCHING OUT INTO NEW VENTURESSUSTAINABILITY REVIEWby high level operational committeessuch as the ALCO, InvestmentCommittee, Marketing Committee, ITSteering Committee and ManagementCommittee. The outcomes of thesereviews are reported to the Board. TheStrategic Business Plan, Annual ActionPlan and Annual Budget set out anumber of performance indicators andthese are periodically reviewed.Precautionary ApproachInternal audits are conducted to apre determined plan, after assessingassociated operational risks by theInternal Audit Division, which is headedby a DGM. A separate Risk ManagementDivision has also been established withinthe Bank. The methods of mitigatingrisk are explained in detail in the RiskManagement Report in page 104.The Compliance Division monitorsthe regulatory compliance of the Bankand corrective measurements are takenas a precautionary approach. TheBusiness Continuity Plan and DisasterRecovery Plan have been developed asa precautionary approach.External Initiatives Applicableto NSBNSB adheres to a number of externalrules and codes set by regulatory andstandard setting institutions. Theleading of these are the guidelines anddirections issued by the Central Bankof Sri Lanka, which is the nancialsector regulator of Sri Lanka. NSBis also subject to directions of theMinistry of Finance and Planning asthe sole shareholder of the Bank andthe government representative. TheBank adheres to LKAS & SLFRSguidelines and standards in preparationof Financial Statements. Our internalaudits are conducted according to thestandards set by the Internal AuditorsAssociation and in conducting systemaudits, we adhere to the requirementsof the Institute of System Audit Controland Assurance standards. In the area ofrisk management, we comply with Basel11 guidelines and generally acceptedrisk management principles. In additionour Credit Division has obtained ISO9001:2008 certication and adheres tothe ISO standards.Bribery & CorruptionNSB has always maintained a zerotolerance on bribery and corruption.We will not condone or knowinglyparticipate in any such acts that construebribery and corruption in any way.Corruption Risk AnalysisThe associated risk of branchesare evaluated according to the preestablished parameters and previousexperiences. Accordingly, branchesare assigned a high, moderate or lowrisk rating. The Annual Audit Planis developed accordingly, to mitigateassigned risks. Every branch is auditedonce in two years. The audit reportsare forwarded to the BAC. Follow upactions are being taken by the InternalAudit Division.Responses to CorruptionIn instances of fraud or corruptionan investigation is conducted and thendings are handed over to the HumanResources Division for disciplinaryaction.NATIONAL SAVINGS BANK . ANNUAL REPORT 2012