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  • Senior Management

    • ST-1.2.7

      Responsibilities of the senior management must include:

      (a) Ensuring implementation and monitoring of the stress testing programme;
      (b) Developing stress testing policies and procedures in accordance with Section ST-1.4;
      (c) Participating in the review and identification of appropriate stressed scenarios;
      (d) Ensuring that scenarios are coherent with the risk profile of the bank's business and the market it operates in;
      (e) Ensuring that stress testing methodology is proportional to the scale and complexity of the bank;
      (f) Providing the Board and where relevant, Shari'a Supervisory Board with key information which has a bearing on stress testing exercise. This includes information on assumptions, extent of judgement used and limitations of the stress tests including the quantitative models used;
      (g) Communicating the stress test results in a clear, concise and comprehensive manner for the Board to consider the impact on the bank's strategy, performance and financial condition;
      (h) Developing and recommending appropriate management action plans to the Board to address potential vulnerabilities identified during the stress test exercise; and
      (i) Ensuring there is timely and effective implementation of Board-approved management action plans.
      July 2018

    • ST-1.2.8

      For branches of foreign bank licensees, where no local board of directors exists, all references in this Module to the board of directors should be interpreted as the authorized person(s) at the Head Office/ Regional Office.

      July 2018