MANAGEMENT LEVEL – RISK COMMITTEE (MRC)
The proposed roles and responsibilities of the Management Level Risk Committee is summarized below:
PURPOSE
The MRC will be responsible for assisting the Board of Directors to fulfill their oversight responsibilities for the risks that the Bank is exposed to. The purpose of the MRC is to support the BOD to initially focus on
- Portfolio quality review.
- Asset Liability Management.
- Key Risk Indicators.
ROLES AND RESPONSIBILITIES
MRC will provide oversight and monitor all the issues relating to risk policies and procedures and to analyses, manage and control risks on a Bank wide basis. MRC will have the following roles, responsibilities with respect to risk management
- Primary responsibility for managing bank’s Credit, Market, Operational Risk and other material risks as required under Pillar II i.e.
- Liquidity Risk, Interest Rate Risk in Banking Book etc.
- Review and approve risk management policies, including policies related to credit , market and operational risks etc.
- Review and approve capital framework and risk aggregation policies and methodologies across the bank.
- Approve significant changes to the Risk Organization.
- Provide the Board with timely assessment of the aggregate credit risk profile concerning risk concentrations, portfolio composition and quality.
- Approve target market criteria in line with approved risk strategy and risk appetite of the bank.
- Review and approve delegation of financial approval authority to various officials of the bank with respect to credit within the overall parameters approved by the Board.
- Approve risk limits proposed i.e. credit risk limits.
- Delegation of approval authority structure.
- Approve Industry concentration limits.
- Conduct periodic portfolio reviews to ensure that the portfolio risk is within the acceptable risk parameters.
- Propose credit risk strategy and risk appetite of the bank for approval by Board.
- Periodically review the risk strategy and appetite of the bank especially with respect to credit portfolio.
- Review and approve the portfolio management strategies.
- Review business asset quality results versus planned asset quality.
- Review the adequacy of the provision for the risk losses.
- Approve the new risk measurement methodologies risk assessment criteria , rating model & score cards adopted by the bank in the credit risk management area.