Professional Documents
Culture Documents
Enterprise Risk Management
Enterprise Risk Management
Enterprise Risk Management
AUB is exposed to risks that are inherent to any banking business, including credit risk, market AUB’s Assets and Liabilities Committee (ALCO) Senior Management
is responsible for managing AUB’s statement of The senior management is responsible for
risk and operational risk. AUB’s risk management objective is to adequately and consistently financial position, including its liquidity, interest implementing the Board-approved risk strategy,
identify, measure, control and monitor the various risks that arise from its business activities, rate and foreign exchange related risks. In addition, ensuring that procedures and policy are applied
ALCO formulates investment and financial policies consistently throughout the Bank and that all levels
and to ensure that all of its operations strictly adhere to the policies and procedures which are by determining the asset allocation and funding mix of staff are informed of their responsibilities with
established to address these risks. strategies that are likely to yield the targeted financial respect to risk management. Senior management is
results. also responsible for developing the specific policies,
processes and procedures for managing risks in all of
Risk Management Unit (RMU) AUB’s products, activities and systems according to
Risk Management Framework The RMC directly oversees the Risk Management Unit the Board-approved framework.
AUB adopts a top-down risk management framework, (RMU), which is an independent unit within the Bank
with the Board of Directors setting policy, defining the that is principally tasked with quantifying risks using Below is the diagram of the committees of the senior
overall institutional tolerance for risk and creating the established methodologies such as value at risk (VaR), management:
framework that allocates responsibilities and institutes stress testing, back testing and capital sensitivity to
controls for compliance with policies. risk.
The responsibility for implementation of these The RMU reports its findings and makes
risk management procedures resides at all recommendations to the RMC to assist the Board in
levels of the Bank and its subsidiaries, with all setting overall risk management policy that ensures
employees receiving training on their role in both an appropriate balance between risk and return. In
the risk and internal control processes. addition, the Operations and Information Technology Board of Directors
Risk Manager represents the RMU in the Product
Committees of the Board of Directors Committee, which is responsible for setting product
Below is a diagram on the Board committees, to development policies and guidelines. Chief Executive Officer
which Board members were appointed.
Vulnerabilities in the existing risk management
framework are identified, evaluated and reviewed by Chief Operating Officer/
the risk manager of the affected area (either credit, President
market or operational), and appropriate policies and
procedures are implemented to ensure that risks
Anti-Money
are addressed and documented properly in product Management
Board of Directors manuals.
Laundering
Committee Committee