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Within the financial institutions, risks are
continuously monitored and identified. All
surveyed institutions have an open structure
and clear processes for the identification of
risks – in dialogue with the top management.
This is usually done using quantitative analy-
ses of information based on mathematical risk
models. In 51% of the sector (8 out of the 19
institutions surveyed) external experts are
also consulted for the identification of risks.
Communication
All the surveyed institutions have set up trans-
parent communication mechanisms where
top management, the business lines and the
risk manager meet to discuss the risks. Dur-
ing these communication moments, both the
identification and the follow-up of the risks
are discussed. In nearly all the surveyed finan-
cial institutions, risk measurements are also
discussed. In addition, 13 out of the 19 insti-
tutions surveyed (96% of the sector) have a
risk committee that operates at the level of the
Belgian management board. Three fourths of
the risk committees include external and in-
dependent members, and in some cases these
members even constitute a majority.
78%
of the banking sector (8 out of the 19 fi-
nancial institutions surveyed) include in their
management boards (and/or committees)
more independent, external members than are
mandatory. This way, conflicts of interest and
abuse of power are countered. Ensuring that
these independent members also have all rel-
evant information available to perform their
job properly is a constant point for attention.
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Risk management
100%
of the institutions surveyed
has an open structure and
clear processes for the identi-
fication of risks. This always
takes place in dialogue with
the top management.