About Us

Management of Risk

The Financial Risk Management Office (FRMO) assesses the credit, interest and foreign exchange risk on monetary policy and non-monetary policy operations of the Bank. It measures the performance of the Investments Department in generating a return on the Bank's internal holdings within the approved risk framework approved by the Board of Directors and reports on a regular basis to the Investments Policy Committee and Risk Committee. The office is also responsible for maintaining and establishing good business relationships with financial institutions, based on transparent terms and conditions.

The Operational Risk Management Office (ORMO) promotes a strong risk management culture throughout the organisation, focussing on the identification, assessment and mitigation of risks, thus protecting the Bank's assets and resources.

The Office ensures that:

  • all business areas' critical operations have business continuity plans in place and are prepared to deal with uncertainties;
  • information assets are safeguarded through the implementation of an effective Information Security Management programme;
  • risks are brought to the attention of the Risk Committee and the Board of Directors through a systematic mapping of all risks across the Bank's business processes.

The Risk Committee is vested with oversight responsibilities in respect of the risks inherent in the operations of the Bank and in risk-mitigating processes across all of the Bank's activities.

The main function of the Risk Committee is to ensure that the risk management system is effective and responsive to various forms of business risk as they evolve. The Committee sets out the risk culture and makes recommendations on the risk strategy of the Bank, taking into account any policies set by the Board. In fulfilment of its mandate, the Committee considers all forms of risk covering the enterprise-wide activities of the Bank, including credit risk, market risk, and liquidity risk, as well as operational, reputational, legal and strategic risks.