Risk Management

Embracing the Risk Management Culture of HFC Bank

Risk Management Aim

Sustainable growth through Sound and Effective Governance, RISK Management and Internal Control.

We strongly believe that sound and effective governance, RISK management and internal control play a very significant role in meeting the desired stakeholders’ expectations. In the idea of putting ‘customer first’ we will ensure that healthy and stable operational activities of HFC Bank are always balanced and transparent with sound and effective governance, RISK Management and Internal Control to enhance the enterprise value.

RISK Management Objectives

  • Create and maintain organizational culture emphasizing the “RISK” orientated environment;
  • Advocate effective high standard of ethical and prudential behavior at all levels of HFC Bank;
  • Promote RISK based culture both through actions and words while conducting the business of HFC Bank;
  • Ensure all applicable risks are managed within the Board approval parameters and tolerance limits;
  • Prioritise RISK Management activities of HFC Bank focused with policies and procedures;
  • Enhance the internal control mechanisms in meeting stakeholders’ expectations.

Best Practices of RISK Management, Audit & Compliance

Control Environment: We must ensure that RISK Management philosophy, culture and ethics at all levels of business of HFC Bank are created and maintained.

RISK Assessment: We must identify the inherent RISKs at all levels of businesses of HFC Bank and manage, and establish RISK-measurement practices that are appropriate.

Control Activities: We must establish and maintain controls at all levels of business of HFC Bank to ensure that we are effective in achieving the organization’s profit and other objectives, based on a designated level of RISKs and Board approved tolerance limit.

Monitoring and Communication: We must ensure that monitoring and compliance aspect of information required to achieve the organization’s conrol objectives are accumulated in a management information system and communicated effectively at all levels of businesses of HFC Bank.

Accountability: We must ensure that all levels of businesses of HFC Bank, RISK associated with policies, plans, programs and operations are explicitly understood, and that investment in RISK management measures and stakeholders’ interests are optimally balanced with transparency and accountability of the actions and activities.

Commitments: We must be committed in meeting the stakeholders’ expectations in enhancing the RISK Management discipline at all levels of businesses of HFC Bank by reinforcing strong audit and compliance culture with adequate training and development that would foster sound RISK management practices.