TMB’s Risk Management Policy

corporate governance

Risk management is essential to TMB’s business to being able to create shareholder value with appropriate and sustainable shareholder returns. Risk management is embedded in the daily business activities and strategic planning with the objective to optimize risks and returns. Our approach to risk is founded on solid risk governance and embedding a risk management culture where all employees look for risks, consider their impacts, and apply appropriate risk mitigation strategies.

TMB maintains a risk governance structure that is intended to strengthen risk management while ensuring that risk-taking authorities are cascaded down from the Board to the appropriate committees and functional levels. Risk issues and the changing regulatory and business environment are managed in an efficient and effective manner.

The Board of Directors (BoD) holds ultimate responsibility of bank-wide risk management. The Risk Management Committee (RMC) has been delegated by the Board of Directors to review and oversee the management of all risks across the Bank and is authorized to approve the Bank’s overall risk management strategies, policies, frameworks and standards, as well as aggregate risk tolerance and risk concentration levels.

Several risk committees provide forums to discuss specific risk areas:

The Risk Policy Committee

To assist the RMC in fulfilling its oversight of internal policies, frameworks, standards, risk appetite targets and boundaries, as well as issues related to credit risk management.

The Portfolio Monitoring Committee

To serve as a discussion forum for Business functions and Risk functions with a primary focus on credit portfolio monitoring to ensure appropriate proactive credit portfolio management and alignment with business strategy.

The Operational Risk Management Committee

To assist the RMC in all matters related to the operational risk management.

The Asset and Liability Management Committee

To assist the RMC in all matters related to the asset and liability management and balance sheet management.

However, Business Units are primarily responsible for managing risks within their responsible portfolio.