56
How do
the banks
identify and
communicate
their risks?
Each financial institution is individu-
ally responsible for the suitable manner
in which it identifies its risks and com-
municates about them.
All institutions have an open structure
and clear processes for the identifica-
tion of risks. This always takes place in
dialogue with top management.
Identification
Nearly every financial institution has a written
risk charter in which the institution’s position
in respect of risk-taking is stated. 75% of the
sector (14 out of the 19 institutions surveyed)
systematically publishes this charter on the
intranet and, in addition, it is often dissemi-
nated via e-mail. Some institutions go even
further and provide training sessions (72%
of the sector, i.e. 10 out of the 19 institutions
surveyed) and/or
e-learning
(61%
of the sec-
tor, i.e. 8 out of the 19 institutions surveyed)
about their risk charter. Often, such training
sessions or e-learning modules are mandatory
for staff.
Febelfin Academy, the training institute of the
financial sector, also offers various courses in
respect of risk management. A few examples:
Basel II and the transfer to Basel III, Enter-
prise Risk Management, Financial Risk Man-
agement or Professional Certificate in Risk
Management.
“
If a risk appetite merely becomes a
statement that you dust off every year
with a perfunctory review process,
it is a wasted effort. It has to become
a living document that you can
relate to in everything you do.”
E&Y, Progress in financial services risk management, 2012
3.
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GOOD GOVERNANCE