Our risk appetite In pursuing its strategic objectives and upon evaluation of threats and opportunities, CFSL has defined a risk appetite statement that sets out the amount of risk we can afford to take, need to take and prefer to take in achieving our objectives. The Group’s approach is to minimise exposure to financial risk, operational risk and reputational risk, while accepting a risk/reward trade-off in supporting the delivery of its strategic objectives. The risk appetite, along with the risk tolerance and limits, have been reviewed during the year to take into consideration the prevailing economic environment. These are independently monitored by the Risk Management team, who then reports them to the Risk Management forums and to the Risk Management Committee. The articulation of risk appetite levels for CFSL is founded on the following pillars: Capital Adequacy Portfolio and Credit Risk Liquidity and Funding Risk Market Risk Operational Risk IT and Cybersecurity Risk Legal and Compliance Risk Business / Strategic Risk Reputational Risk Risk policies and procedures At the heart of the overall Enterprise Risk Management framework lie key policies, standards, guidelines, processes and procedures. These policies and procedures which support the risk management framework provide guidance and define the minimum requirements for controls to the business. The policies are reviewed on an annual basis, or as and when required, to cater for changes in the business operating environment, new products, best practice approach and regulatory requirements. All relevant documents are accessible to the staff through an online Policy portal. 61 OUR YEAR AT A GLANCE OUR PEOPLE GOVERNANCE FINANCIAL STATEMENTS
RkJQdWJsaXNoZXIy MzQ3MjQ5