Chapter 6: Central Risk Committees Flashcards
What is the central risk committee of the bank
committees at the group level that monitor risks
Members include managing director, division head or member of the board of directors
what is the group credit committee
focuses on credit risks
* country limits
* limits per business sector
* credit portfolio quality
* credit margin of portfolio
* Approves major individual credit facilities
What is the Asset and Liability Committee
Manages risks w/ composition of bank balance sheet
* supervise treasury
* Oversee bank’s own funding composition
What is the Market Risk Committee
Focuses on new products on financial markets
Uses models to determine value/risk of products
What is the Operational Risk Committee
Forms general policy and procedures for operational risks
* Qualitative: rank/prioritize risks per business unit
* Quantitative: e.g. Set up database of losses from operational errors or use a program to predict losses
