Our risk management process and framework The Group has processes in place to identify/assess, monitor, manage and report risks to help ensure we remain within our risk appetite: L1 Board of Directors Board Committees Management Forum Risk Management Team Compliance Team L2 L3 STRATEGIC LAYER Underpinned by our risk management process MANAGEMENT LAYER The Group’s risk management governance structure begins with oversight by the Board of Directors, either directly or through its Committees to ensure that decision-making is aligned with the Board’s approved risk appetite. The executive management is responsible for translating the high-level overall guidance from the Board into operational aspects and then monitoring and reporting them back periodically to the Board/ Board Committees. The aggregate enterprise-wide risk profile and portfolio appetite are discussed at the respective risk management forums and further reported to the Risk Management Committee on a quarterly basis. The Risk Management Team and Compliance Team are independent of the Business Units. • The Risk Management team is responsible for identifying, measuring, monitoring and reporting significant risks across the organisation. • The Compliance Team ensures that there are appropriate controls to comply with applicable laws and regulations, and escalate significant non-compliance matters to Management and to the Audit & Compliance Committee. TOP-DOWN APPROACH Identification of the Group’s principal risks BOTTOM-UP APPROACH Identification of all important risks, and definition and implementation of risk policies and procedures that control daily decisionmaking IDENTIFY key risks ASSESS the potential impact and likelihood MITIGATE using appropriate controls and management actions MONITOR the potential for internal and external changes to risks and the continued efficacy of controls REPORT & ESCALATE regularly and proactively to the Risk Management Forums and the sub-committees of the Board Risk Management Report Continued 60 CIM FINANCE ANNUAL REPORT
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