Page 64 - InterloopAnnualReport2021

RISK MANAGEMENT

POLICY

The Board of Directors is responsible for developing and monitoring the Risk Management Policy to determine
the company’s level of risk tolerance. The Policy aims at management of risks by identifying them early on and
minimizing their impact on the business through mitigation strategies. The Board of Directors carried out an in-
depth analysis of the major risks faced by the company business that could threaten the business model, future
performance, solvency, or liquidity of the company. The types of risks include strategic, commercial, operational,
and financial, which have been identified along with the nature of their impact and likelihood of occurrence, and the
mitigation strategies to manage these risks.

RISK GOVERNANCE
The company’s Board of Directors is also responsible for establishing an effective risk management framework and
provides oversight through the Board Committees. The Risk Management Committee assists the Board, primarily
for monitoring and approving the risk policies and associated risk management frameworks. The Risk Management
Committee is also responsible for:
• Reviewing and approving the Corporation’s The Audit Committee monitors financial and
risk appetite statement on an annual basis and regulatory compliance risks and the internal audit
approving any material amendment to the risk function provides independent and objective analysis
appetite statement of the company’s controls and governance processes.
The Human Resource & Remuneration Committee
• Reviewing and approving the Contingency Funding
reviews succession planning for the availability of the
Plan at least annually, and approving any material
adequate competent human resource for key company
revisions to this plan before implementation
operations and assesses compensation programs to
• Reviewing significant risk exposures and the evaluate the risk of escalation of expense on salaries
steps that management has taken to identify, & wages.
measure, monitor, control, and report such
exposures, including risks such as credit, market, The responsibility for monitoring and control of
liquidity, operational (which includes fiduciary and risks has been delegated to the management of
technology risks), strategic, and model and risks the company. The Management Committee (MC),
associated with incentive compensation plans comprising the CEO and Senior Management of
• Evaluating risk exposure and tolerance the company is responsible for supervising risk
identification and management & implementation of
• Reviewing and evaluating the company’s practices
the policy & procedures, all across the organization.
concerning risk assessment and risk management
All Functions of the company identify and evaluate
• Reviewing significant issues identified by Risk and risks related to their areas, devise suitable mitigating
Compliance and the Internal Audit Department strategies, and report any modifications or additions
concerning the risk management and compliance to MC, on regular basis.
activities of the Corporation, together with
management's responses and follow-up to these
reports
• Reviewing significant examination reports and
associated matters identified by regulatory
authorities relating to risk management and
compliance issues, and management's responses

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