Risk Management Committee

 

Based on the Board of Directors meeting, Session No. (2) dated 25/1/2024, the Risk Management Committee is formed in accordance with the instructions of the Central Bank of Iraq No. (4) of 2010, Article (65), Clause 9, Paragraph (B), and in accordance with the updated Corporate Governance Guide dated 7/11/2018.

A committee has been formed from the non-executive members of the Board of Directors, with the Committee Chairman being an independent member, whose names are listed below:

 

1. Dr. Adnan Zidan Abdulaziz (Chairman of the Committee)
2. Hussein Taleb Ali (Member)
3. Ahmed Suleiman Saleh (Member)

 

Duties of the Risk Management Committee:

1- Review the bank’s risk management strategy before it is approved by the Board of Directors.

2-Review the credit policy and provide recommendations regarding it to the Board of Directors for approval, as well as overseeing the implementation of the proposed credit policy.

3-Monitor the credit risks borne by the bank, whether related to (the standard approach) or (the internal ratings-based approach), as well as (operational risks), (market risks), (supervisory review), and (market discipline) outlined in the regulations issued by the Basel Committee on Banking Supervision.

4-Set credit limits that exceed the authority of the managing director or regional manager.

5-Monitor the bank’s ability to avoid liquidity risks under the Basel III regulations, including liquidity standards.

6-Recommend discontinuing activities that pose risks to the bank and that it does not have the capacity to manage.

7-Ensure the bank’s compliance with regulations, instructions, and policies related to risk management.

8-The committee meets at least four times a year, and any senior management member may be invited to attend its meetings to clarify certain matters or issues that the committee deems important to address.

9-Periodic review of the proposed risk management policy by senior management and providing recommendations to the Board of Directors for approval and ratification.

10-Supervise the actions of senior management regarding

 compliance with the bank’s approved risk policies.

 

11-Continuous communication with the Risk Department Manager and obtaining periodic reports from them regarding issues related to the current risk situation in the bank and the risk culture, in addition to reports on the established limits and ceilings, any violations of these limits, and risk avoidance plans.

12-Supervise the bank’s capital strategies, liquidity management, and all related risk management strategies to ensure their alignment with the bank’s approved risk framework.

13-Receive periodic reports from the committees derived from executive management (credit, investment, information technology and communications).

14-Review the investment policy and provide recommendations to the Board of Directors for approval, as well as overseeing the implementation of the proposed investment policy.

15-Evaluate the performance of the investment portfolio in terms of return and risk concerning the bank’s internal and external investments, and continuously monitor indicators and movements in local and international capital markets.