Français/English - Arab Banking Corporation, ALGERIA

Corporate Governance
SENIOR MANAGEMENT
Senior managment, led by Mr. Noreddin Nahawi, is organized to
optimize its activity in 11 active committees:
l The Management Committee whose main mission is to monitor,
depending on the economic situation, the implementation of ABC
Algeria’s strategy, as defined by the Board of Directors. It also
has the mission of monitoring the performances of the different
structures of ABC Algeria, the progress made with the major
structuring projects and examining the issues related to human
resources as well as cases deemed important. In 2012, the
operating mode was redefined for better governance;
l The Asset and Liability Committee (ALCO) which is responsible
for managing the cash flow, the investment of liquid assets and
balanced assets/liabilities of ABC Algeria;
l The Central Credit Committee which makes decisions in terms of
granting loans and which, further, deals with the non-performing
debts of ABC Algeria and monitors their evolution;
l The Local Consumer Credit Committee (LCC) which is the
supreme local committee in charge of the Retail business and
which operates with a delegation from the HOCCC (Head Office
Consumer Credit Committee);
l The IT Steering Committee whose main mission is to ensure that
the projects, investments and major services of the Information
Technology structure of ABC Algeria are in line with the needs
of the various departments of the ABC Algeria organisation and
decides on their priorities in accordance with the overall strategy
and depending on the expected added value of these projects,
investments and services, as the business process is rolled out,
and the resources affected. The Committee ensures in particular
that the risks related to these projects are managed appropriately.
In 2012, the missions of the Committee were redefined for better
supervision of the projects, investments and major services
conducted/developed by Information Technology.
l The IT Security Committee, created in 2012, is a platform in
charge of supervising the IT security programme, of analysing
and evaluating the impact of the implementation of security
strategies on the organisation of ABC Algeria. The Committee is
responsible, inter alia, for approving the strategies and initiatives
in the field of IT security.
l The Risk Management Committee is responsible for supervising
the overall management of risks and assuring that the policies,
procedures and controls are effectively implemented.
l The Policies and Procedures Validation Committee is the
platform put in place to examine the planned policies and
procedures drawn up for the various business areas of ABC
Algeria and to approve their implementation. In 2012, the
composition of the Committee was extended to include the Head
of Risk and the Head of Policies and Procedures Coordination in
view of improving the decision-making process of the Committee.
l The New Products Committee, put in place in 2012, is the
platform authorised to formulate a mandatory opinion, at 1st
instance of the new products’ approval circuit, on any plan to
launch a new product; it reviews the existing products and
withdraws a product from the product range of ABC Algeria.
l The Purchasing Committee is the platform responsible for
examining and approving, from a defined threshold, the selection
of service providers and/or suppliers of ABC Algeria and is also
responsible for validating the briefs when the drafting of a brief
is required for selecting a supplier and/or service provider to
respond to specific needs.
l The Business Continuity Plan Committee which, as its name
indicates, plans and puts in place the necessary measures to
ensure continuity of business in case of the occurrence of a
disaster such as a fire, an earthquake, a riot, etc.
PERMANENT CONTROL
Permanent Control Division is responsible for ensuring the
coordination and efficiency of permanent control.
This division was created in 2012 and encompasses the areas
of compliance, legal, procedures, and IT security and business
contintuity.
Its mission is to ensure compliance, security, validation of
transactions, compliance with all guidelines, instructions, internal
procedures and any other procedures related to the monitoring of
all risks in accordance with Regulation No. 11-08 of 28 November
2011 of CBA.
As such, this division is the recipient of all instructions of
the Management, Board orientations and resolutions of all
governance committees.
The following is a non-exhaustive list of the main tasks of this
division:
l Risk assessment and update repositories and risk controls:
It centralizes and maintains standards and risk controls. In
this context, it sets a methodological framework and assists
in identifying and evaluating risks and in selecting the most
appropriate permanent controls of the 1st level. It ensures the
development of operational procedures and control incorporating
these permanent controls.
l Coordination and / or implementation of permanent controls
2nd level to ensure the effective adherence to the permanent
controls in place. The division leads the whole chain composed
of dedicated controllers. It exploits various audit reports
and reporting statements sent to it. Moreover, it maintains
relationships with regulatory authorities and prepares the annual
internal control report for the Bank of Algeria.
l Risk identification and implementation of suitable control
systems: it ensures, based on its own staff and local
correspondents that are functionally related, that the different
managers have identified risks and implemented adequate
control measures.
l Follow up recommendations: it centralizes all the
recommendations of internal and/or external audits (Permanent
Control, Internal Audit, Audit HO, Regulatory Authorities, External
auditors, CAC etc..) and ensures their implementation by the
operational departments concerned in a reasonable timeframe.
25