Governance
Enterprise Risk Management
The Board shall form a Enterprise Risk Management Committee to assists and advises the Board of Directors in fulfilling its oversight responsibilities to ensure the quality and integrity of the Corporation’s business and financial risk profile, risk management system and accomplishment of its objectives.
The Committee shall consist of three (3) members of the Board, majority of whom shall be independent directors, including the chairman. At least one member must have relevant thorough knowledge and experience on risk and risk management.
The Committee shall have the following duties and responsibilities:
- Develops a formal enterprise risk management plan;
- Oversees the implementation of the enterprise risk management plan through a Management Risk Oversight Committee;
- Evaluates the risk management plan to ensure its continued relevance, comprehensiveness and effectiveness;
- Advises the Board on its risk appetite levels and risk tolerance limits;
- Reviews at least annually the Corporation’s risk appetite levels and risk tolerance limits;
- Assesses the probability of each identified risk becoming a reality and estimates its possible significant financial impact and likelihood of occurrence;
- Provides oversight over Management’s activities in managing credit, market, liquidity, operational, legal and other risk exposures of the Corporation;
- Reports to the Board on a regular basis, or as deemed necessary, the Corporation’s material risk exposures, the actions taken to reduce the risks, and recommends further action or plans, as necessary.