Enterprise Risk Management

The EXIM Bank is committed to the continuous identification, analysis, reporting, monitoring and management of risks and takes an enterprise wide approach to risk management. The Bank’s risk management framework which focuses on the attainment of an appropriate balance between risk and return and the mitigation of adverse effects on the Bank’s financial value, ensures compliance with regulatory requirements and standards of best practice, as well as conformity with the Board’s risk appetite. An unwavering commitment by the Board of Directors and Senior Management to actively manage risks is supported by an ever strengthening risk management culture among staff. The framework incorporates a risk governance structure and appropriate policies and procedures.

The Bank’s risk governance structure includes administrative controls which are effected through relevant Committees of the Board (Audit Committee, Credit Committee, Product Development Committee) and Executive Management, and manages risk by ensuring that lending activities are compliant with its risk appetite/tolerance.

The Internal Audit Division independently and objectively monitors the effectiveness of risk management policies, procedures and internal controls. The Risk Management and Compliance Officer works with each Division and Senior Management to ensure continuous focus on key risks and trends which may influence risk oversight.

The principal risks affecting the conduct of the Bank’s activities are credit, liquidity, market and operational risks. Further details of these risks are provided in Note 3 of the Financial Statements.