2009 Annual Report and Financial Statements - UBA Plc

Risk management report (continued)
Maturity profi le
Balance sheet as at 30 September 2008
0-30 days 1-3 months 3-6 months 6-12 months Over 1 year Total
N’million N’million N’million N’million N’million N’million
Assets
Cash and balances with central banks 75 267 18 588 21 004 5 229 – 120 088
Treasury bills 145 637 21 274 6 092 1 002 – 174 005
Due from other banks 424 607 130 315 86 932 9 410 3 605 654 869
Loans and advances to customers 100 892 118 111 65 766 63 678 82 963 431 410
Investment securities – – – – 126 895 126 895
Investment in subsidiaries – – – – – –
Investment in associates – – – – 588 588
Investment in joint venture – – – – 900 900
Goodwill – – – – – –
Investment property – – – – 589 589
Other assets 5 867 8 734 22 167 48 548 17 120 102 436
Property and equipment – – – – 61 553 61 553
Liabilities
752 270 297 022 201 961 127 867 294 213 1 673 333
Customer deposits 720 804 257 931 154 482 100 537 99 535 1 333 289
Due to other banks 6 755 5 302 7 041 5 207 7 695 32 000
Liability on investment contracts 4 056 8 112 10 139 6 084 12 167 40 558
Other borrowings – – – – – –
Current income tax 848 1 696 3 062 – – 5 606
Other liabilities 13 835 10 858 14 420 10 663 15 830 65 606
Deferred income tax liabilities 107 214 268 161 243 993
Retirement benefi t obligations – – – – – –
Capital and reserves – – – – 195 281 195 281
746 405 284 113 189 412 122 652 330 751 1 673 333
Net liquidity gap as at 30 September 2008 5 865 12 909 12 549 5 215 (36 538) –
Operational Risk Management
The unit under the supervision of the Group Chief Risk Offi cer is directly responsible for defi ning Operational Risk policies (board policies,
management resolutions, and procedures). The unit monitors overall operational risk exposures and works in close collaboration with business
and support units to obtain a top-down view of the operational risks.
The Group has a comprehensive operational risk management framework in place which aims to prevent or minimise losses resulting from
inadequate/failed internal processes, people and systems or from any external events. The key activities of performed in terms of this framework
are:
• Develop (including periodic reviews) and recommend operational risk management policies and framework for approval by the Board Risk
Committee
• Monitor adherence to, and ensure that, operational risk management policies and frameworks are uniformly implemented in all the entities
within the Group
• Key Risk Indicators (KRI) tracking are central to our operational risk monitoring and reporting processes and are a systematic means of
informing our risk measurement framework and approaches to risk capital allocation. We employ various qualitative risk assessment methods
in order to calculate the potential loss estimates at business unit and enterprise-wide levels. KRIs reporting feeds into our operational risk
measurement framework. Comprehensive MIS platforms are in support of the tracking process.
• Monitor changes in operational risk profi le and control eff ectiveness within the Group
• Monitor implementation of operational risk mitigating action plans by risk and control owners to ensure eff ectiveness and adequacy of such
initiatives
• Maintain operational loss event database for the Group to ensure that economic capital charges for operational risk can be measured
accurately
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Annual Report 2009