Risk Management Framework

We have a defined risk management strategy and framework, which is devised to identify, measure, monitor and mitigate various risks. A Risk Management committee, guided by the policy, directs appropriate systems to mitigate all material risks faced by the Company. The risk management framework draws inspiration from ‘Three Lines of Defence’ approach. Within this, the Company management acts as first line of defence, functional team such as risk management and compliance act as second line of defence and the internal audit acts as third line.

Risk Management Framework

Line of Defence

Company Management
Functional Teams
Internal Audit


  • Risk Committee
  • Information Strategy Committee
  • Audit Committee
  • Asset Liability Committee
  • Risk Department
  • Business Functions
  • Internal Audit Department
  • Risk Analytics

Scope and Authority

  • Integration of Risk Principles Across all Businesses
  • Risk Strategy and Advisory
  • Risk Policies
  • Controls and Review
  • Organisational Communications
  • Policy Implementation
  • Risk Monitoring and Reporting
  • Independent Reviews
  • Reporting to Board Committees

The risk review is done at multiple stages and frequencies by the Risk Department. The robust risk monitoring framework utilises five distinct strategic analysis to identify risks at inception stages. Our risk landscape includes Credit Risk, Liquidity Risk, Digital Risk, ESG Risk, Third Party Risk, Collateral Risk and Operational Risk.

Risk Assessment Methodology

Risk management is integral to the Company’s strategy. The comprehensive understanding of risk management throughout the various levels of an organisation aids in driving key decisions related to risk-return balance, capital allocation and product pricing. The Company has a well-defined Risk Management Strategy and a Framework which is designed to identify, measure, monitor and mitigate various risks. Additionally, it is also ensured that appropriate focus is on managing risk proactively by ensuring business operations are in accordance with laid-down risk. A Board approved Risk Management Policy has been put in place to establish appropriate systems or procedures to mitigate all material risks faced by the Company

The Company is exposed to different types of risks emanating from both internal and external sources. A strong risk management team and an effective credit operations structure ensures that risks are properly identified and timely addressed, to ensure minimal impact on the Company’s growth and performance.

Risk Management team, identifies, analyses, and takes measures to mitigate risks faced by the Company. The team is guided by the Company’s Risk Management Committee and the Senior Management to develop and implement Risk Assurance practices on a pan-organisational basis.