Page 91 - EXIM-Bank_Annual-Report-2023

Management Discussion and Analysis Ensuring Sustainability Commitment to Lead Upholding Accountability Financial Statements 89

no. Primary Enterprise Risk Mitigations

4. Market Risk • Maintain a comprehensive market risk policy and control.
• Proactive monitoring, analysis and reporting by Treasury Middle Office to ensure the
market risk management is within the Board-approved Risk Appetite.
• All exposures and non-compliances, including emerging risks, are properly assessed
and escalated to the Management and Board Committees with action plan and
monitoring status.
5. Liquidity Risk • Maintain a comprehensive liquidity risk policy and control.
• Proactive monitoring and liquidity risk management to ensure it is within the
Board-approved Risk Appetite.
• Conduct forward-looking scenario analysis and stress test to identify the areas that are
vulnerable to liquidity risk and mitigate it with the right amount of liquidity buffer and
contingency funding plan.
• All exposure and non-compliance, including emerging risks are properly assessed and
escalated to the Management and Board Committees with action plan and monitoring
status.
6. technology Risk • Establish adequate internal process and controls, include system backup and recovery.
• Maintain listing of IT-related issues and incidents with close monitoring of rectification
progress by the working level committees, for escalation to the Management and
Board Committees, where relevant.
7. Compliance Risk • Support the Bank’s strategy by establishing clear roles and responsibilities to help
embed good compliance and risk management practices throughout the business to
align business outcome with the risk appetite.
• Integrate a Compliance Risk Management Programme (CRMP) into the daily
management of business and strategic planning. The CRMP helps to protect the Bank’s
reputation, lower the cost of capital, reduce costs and help the Bank to minimise the
risk of investigation, prosecution and penalties.
• Maintain robust and comprehensive compliance framework, policies and procedures.
• Embedded compliance function through the establishment of the Designated
Compliance and Operational Risk Officer (DCORO) functions in every division for
active monitoring of compliance and reporting matters.
• Compliance issues are promptly highlighted and presented for deliberation at the
Management and Board Committees.

8. Environmental, Social and • Integrate of major climate-related risk factors into the existing enterprise-wide risk
Governance Risk management framework.
• Continuously develop data capabilities, tool and methodologies to effectively
aggregate and report material sustainability-related risks.
• Reflect the sustainability considerations in the governance, business strategy and
operations, reporting and risk management systems.