Français/English - Arab Banking Corporation, ALGERIA

Risk Management
Risk Management in ABC Algeria is being constantly developed;
risk identification, measurement and analysis tools are
continually reviewed and improved in order to comply with the
regulatory constraints and the instructions of the Group.
Risk Management in ABC Algeria is being constantly
developed; risk identification, measurement and analysis
tools are continually reviewed and improved in order to comply
with the regulatory constraints and the instructions of the
Group. To this end, a uniform risk classification method has been
adopted.
The risks are managed overall within three committees:
l The Local Credit Committee and the Local Consumer Credit
Committee which particularly ensure compliance with the credit
policy for each type of customer concerning it.
l The ALCO committee responsible for defining the medium and
long term policy as well as the short-term actions for prudent
management of assets and liabilities.
l The Risk Management Committee whose overall objective is to
review the risks incurred by the bank whether these pertain to
regulatory risks, compliance risks or operational risks.
In addition to these three committees, and in accordance with
the regulations in force and the recommendations of the Group,
a new products committee was put in place in June 2012. The
main mission of this committee is to ensure that all risks have
been identified, detected and controlled before launching a new
product. It also makes decisions on the revision of an existing
product or the withdrawal of a product from the range of
products offered by the Bank.
The Credit and Risk Division, which reports directly to the Deputy
CEO, is responsible for the credit policy and the risk management
policies as well as the related procedures. The Credit Department
is responsible for managing the credit risk and the Risk
Department monitors the operational, retail and liquidity risks and
ensures compliance with the procedures in terms of IT security.
will participate in the implementation and the monitoring of the
operational risk initiatives.
Risk Control Self Assessment
Further, after finalising the RCSA (Risk Control Self Assessment)
by business line, the operational risk department, in collaboration
with the different departments of the Bank, is responsible for
setting up the RCSAs by process which, eventually, will enable
it to have an overall view of the risk profile of the business lines
and the key processes of the Bank.
In parallel to this, audit standards proposed by the Group are
progressively put in place whilst being adapted to the nature and
to the volume of the business.
The risk management committee which was put in place 2011
is continuing its risk supervision missions (operational risk,
regulatory risk, compliance, etc.). Its frequency has however been
revised. It is now held once every two months and more when
need be. 6 committees were held in 2012.
2. IT Security and Business Continuity Management
The activity of the IT Security Department is focused around:
l BCP: the Business Continuity Plan this year saw the
implementation of the back-up procedure applicable to the
branches as well as the updating of the back-up procedures
specific to the central structures;
l Management of authorisations: this means regulating access
to the bank’s applications. Thus, the general policy has been
validated as well as two other procedures for the SWIFT and
IMAGECHEQUE applications;
RISK MANAGEMENT
1. Operational Risk
In 2012, management of the operational risk pursued the
development of its approach. Thus, monthly questionnaires are
collected from the various structures of the Bank thus aiming
to improve the information feedback mechanism. Likewise,
operational risk champions have been appointed for the most
sensitive structures, both in the branches and centrally. These
champions will reinforce the Bank’s front line of defence and
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