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Section 05 Upholding Accountability
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Management Committees
Management Audit, Risk Responsible to monitor and review the management of key and any emerging risk of the
and Compliance Committee Bank. This includes reviewing the framework, policies, risk appetite, procedures, adequacy
(MARCC) of internal controls and systems, as well as new product or material variation to existing
product offering.
The MARCC, if deemed appropriate, to recommend to the BRC for review and subsequent
approval at the Board.
Management Credit Responsible to review, deliberate and approve the new and renewal of loan/financing/
Committee (MCC) credit/insurance related proposals, including recovery, restructuring and rescheduling
proposals, as prescribed in the Approving Authority and Authority Limits.
Assets and Liabilities Responsible to oversee the overall asset and liability (ALM) management, including
Committee (ALCO) endorsing the appropriate strategies needed. Deliberation on net interest income (NII)
performance and ensuring that all ALM risks remain within the risk appetite set by the
Board.
Information Technology Responsible to provide oversight on Information Technology (IT) governance and to
Steering Committee (ITSC) formulate the IT strategic plans in ensuring that IT is capable of supporting the Bank’s
strategic business plans.
This includes monitoring and deliberation on any new IT regulations that may have an
operational impact to the Bank. The ITSC, if deemed appropriate, to recommend to the
MARCC and BRC for review and further approval at the Board.
Line of Defense
First Line First line of defense refers to all staff in the business functional lines and other supports
functions.
Second Line Second line of defense shall remain well-defined, effective and independent from business
and operational decisions.
Departments/Divisions within the second line of defense shall be knowledgeable and
competent in performing the risk management functions and constructively challenge
business functional lines in executing the Bank’s activities and in managing risks.
They shall be equipped with adequate resources and support to perform the risk
management roles with unlimited access to internal systems and information.
Regular communication with the first line of defense shall be put in place for effective risk
management approaches bank-wide.
Third Line Conduct the periodic review of its risk management processes to ensure its integrity,
accuracy, and reasonableness, as well as to provide assurance on the Bank’s overall
compliance to the applicable laws, regulations, internal policies, procedures and limits.
Close interaction with the second line of defense is required in escalating any risk issues
and to put in place effective controls bank-wide. This includes follow-up on the action
plans on any risk findings prior to submission to the relevant authorities.
