Although business units have primary responsibility for managing specific risk exposures, the Risk Management Group is the central resource for quantifying and managing the portfolio of risks taken by the Group as a whole. It performs the following roles:
- Implements, maintains, improves and communicates a common risk management framework;
- Recommends market risk limits and concentration limits for credit risk by client type, product, industry and country;
- Performs independent reviews of significant risk concentrations and has the authority to challenge such positions;
- Oversees allocation of balance sheet capacity;
- Helps identify opportunities to optimise risk-based return on capital.
The Risk Management Committee, which is supported by the Risk Management Group, provides:
- Oversight and management of all risks; The central point of risk management policy formulation and review;
- Oversight, direction and counsel to other risk committees and risk management processes;
- Information and perspective for the management of DBS' overall risk profile; material changes in our products and the markets in which we participate; business environments; and required changes in risk management processes.
Sub-committees of the Risk Management Committee provide executive forums for discussion and decisions on specific areas:
- Credit Committee
Credit risk and its management
- Asset-Liability Committee
Structural interest rate risk, foreign exchange risk, liquidity risk and their management
- Capital and Commitments Committee
Adequacy, use and allocation of capital across DBS
