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  • IC-1.3 IC-1.3 Board and Senior Management Oversight

    • IC-1.3.1

      The ultimate responsibility for ensuring that there is a robust ICAAP and a sound risk management framework; setting capital targets that are commensurate with the banks' risk profile and control environment; and ensuring that banks set aside adequate capital to support the risks beyond the regulatory minimum requirements, rests with the Board and senior management of the licensees.

      July 2018

    • IC-1.3.2

      Responsibilities of the Board include:

      (a) Ensuring adequate capital management policies are in place; the Board must also review and approve these policies on an annual basis;
      (b) Understanding the material risks that are impacting the business, and also having an awareness of emerging risks and vulnerabilities;
      (c) Reviewing and approving the capital plan and corresponding capital actions;
      (d) Defining the risk appetite/risk tolerance of the bank;
      (e) Ensuring that the bank has a sound risk management framework in place;
      (f) Ensuring that the accountability and lines of authority are clearly delineated and effectively communicated throughout the organization;
      (g) Ensuring that the bank implements adequate infrastructure and controls to measure, monitor and mitigate risk effectively; and
      (h) Ensuring that the bank has adequate capital proportionate to its risk profile under normal and adverse conditions.
      July 2018

    • IC-1.3.3

      Responsibilities of the senior management include:

      (a) Ensuring that bank personnel involved in ICAAP activities have the adequate skills, including complex financial risk management skills, and that employees are adequately enabled through training.
      (b) Ensuring that they have adequate understanding of the material risks that are impacting the business, as well as an awareness of emerging risks and vulnerabilities;
      (c) Ensuring effective implementation of relevant policies, procedures, systems and controls;
      (d) Communicating the internal controls and written policies and procedures throughout the bank; and
      (e) Monitoring risk exposures in accordance with the risk appetite and limits approved by the Board.
      (f) Ensuring that the Board receives adequate information pertaining to risk management and capital management, under both normal and stressed business conditions; and
      (g) Monitoring and reporting of status against ICAAP to the Board.
      July 2018

    • IC-1.3.4

      The roles and responsibilities of Risk Management, Financial Control and Compliance in relation to ICAAP must be clearly documented in the related policies and procedures.

      July 2018