Liquidity & Funding Risk Risk Response • A Board-approved funding strategy is in place, providing clear direction. • A Contingency Funding Plan and Recovery Plan are in place. • The Treasury team is responsible for the day-to-day management of liquidity. • Proactive management of the mismatch between asset and liability maturities. • A diverse yet stable pool of funding sources is maintained, including sufficient liquidity buffers. FINANCIAL RISKS Mismatch in the timing of cash inflows and outflows could impact the Group’s cashflow management and its ability to meet its financial obligations. Funding risk may arise from an over-reliance on specific funding source(s), gaps in funding, or concentrated maturity dates. Interest rate Risk Risk Response • An interest rate gap analysis is conducted to understand the sensitivity of assets and liabilities to interest rate changes. • Interest rate positions, exposures, and market trends are closely monitored, with updates regularly reported to the Asset and Liability Committee (ALCO) and the Risk Management Committee of the Board. • The maturities and interest rate profiles of assets and liabilities are aligned to reduce exposure. • Stress testing and scenario analyses are performed to simulate the impact of different interest rate environments on the Group’s portfolio and capital adequacy. FINANCIAL RISKS The risk arises when the Group’s assets and liabilities have differing interest rate structures or maturities, leading to an imbalance. 83 Introduction Group Overview Leadership Strategy & Performance Risk Management Corporate Governance Statutory Disclosures Financial
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