| Type |
Definition |
How risk is managed |
| Credit Risk |
Risk of loss arising from any failure by a borrower or counterparty to meet its financial obligations when such obligations are due |
Board of Directors approves major policies and limits that govern monitoring of the credit risk. The Bank structures the levels of credit risk it undertakes by placing limits on the amount of risk acceptable in relation to one borrower, or group of borrowers and industry segments. |
| Operational Risk | Risk of loss resulting from inadequate or failed internal processes, people and system or from external event
| Balancing the cost and risk within the constraints of the risk appetite of the Bank and consistent with the prudent management required of a large financial organisation |
| Liquidity Risk | A firm's possible inability to meet its short-term debt obligations, thereby incurring exceptionally large losses | Board of Directors approves asset-liability management (ALM) policies. Liquidity limits are set to address liquidity shocks, whether affecting most financial institutions or Yoma Bank uniquely, are fully covered, and a Contingent Funding Plan is developed. Liquidity levels are being strictly monitored for adherence to the Board’s specified minimums (as defined in the ALM policy) or the requirements prescribed by the CBM. |
| Technological Risk | Risk that the Bank might not have the right technology to deliver the right products and experience to its clients.
| The Bank invests in developing its IT assets and enhancing its customer experience:
|
HR Risk
| Risk of not being able to hire, develop and retain the talent we need to serve our different stakeholders. | Board of Directors is responsible for fostering our values and enabling a positive corporate culture through the implementation of our Code of Conduct. Our HR division is responsible for enhancing our working environment, enhancing our employer branding and offering our employees fulfilling jobs and career opportunities.
|
| Reputational Risk | Risk of losing our social license to operate that may impair the trust of our shareholders, regulators and other stakeholders. | Yoma Bank’s Board of Directors periodically approves and reviews our Code of Conduct. During their onboarding, all the new recruits are trained to understand our Code of Conduct and their duties. Regarding the projects we finance, our Compliance Officer ensures that Yoma Bank operates according to its Anti-Money Laundering and Counter Financing of Terrorism Policy. |
| Social and environmental risk | Business customers of the Bank have to assume their corporate responsibility. They might be liable for adverse impacts on people and/or the environment. | Yoma Bank has set an Environmental & Social Policy to assess the underlying risks of its customers’ projects. The risks analysed cover various dimensions such as environmental, social, and governance-related risks. The Bank will not invest in or support various sectors as defined in section 2 of its policy.
|
| Compliance | Inability to comply with the Law and regulations issued by relevant authorities. | Through its Audit Committee, the Board of Directors is ultimately responsible for ensuring the compliance of the Bank with all relevant regulations and laws. As part of our Management Team, our Compliance Officer ensures that all the functions and employees of the Bank operates according to our standards and policies. |
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