The Risk Management Department provides oversight responsibility for all the Business Units.
Risk Management therefore identifies, assesses and prioritizes risks followed by coordinated application of resources to minimize, monitor and control the probability and/or impact of unfortunate events.
The Bank in December 2009, choose Quadrant Risk Management International Limited, to assist with its Risk Framework, Capital Adequacy Calculation and Regulatory Reporting. Quadrant is also supporting the Bank’s Basel II adoption initiative. The engagement involves the deployment of Quadrant’s SAB2, Basel II Standardised Approaches software for regulatory capital calculation and reporting in full compliance with the Bank of Ghana’s adoption of the International Basel II “Pillar 1” quantitative capital allocation standards.
The department has three functional units namely:
The Market Risk Unit manages the risk created by or inherent within the bank’s assets/liability portfolio including commitments, dealing and trading activities.
These are associated with:
- Interest rate risk
- Foreign Exchange risk
The Operational Risk manages the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
Guiding Principles of Risk Management
ADB has adopted the following principles to guide decision making throughout the organization:
- Conducts its business with integrity and observes high standards of market conduct,
- Conducts its business with due skill, care and diligence,
- Organizes and controls its affairs responsibly and effectively with sound risk management systems and procedures,
- Treats its clients fairly and communicates with them in a way which is clear, fair and not misleading,
- Manages conflict of interest fairly, between itself and its clients,
- Manages operational risk in a cost effective manner, subject to compliance with applicable legislation and regulatory requirements and operational risk exposures,
- Every member of staff plays an active role in the management of operational risk, and
- Deals with its regulators and other supervisory bodies in an open and co-operative way, making full and open disclosure of operational risk events where appropriate.
The Compliance Unit aims at insulating the Bank from risks that could arise from Non-Compliance with laws of Ghana, banking rules and regulations, and prescribed practices both International and Local.
The Compliance function perform the following duties:
- Ensure compliance with Bank of Ghana directives and provisions of the Banking Act, 2004 (Act 673)
- Ensure timely and accurate submission of BSD returns to Bank of Ghana
- Ensure compliance with the bank’s internal policies and procedures
- Ensure timely rectification of concerns raised by Bank of Ghana in their role as supervisors, External Auditors and Internal Auditors
- Ensure compliance with budgetary and strategic plan targets and provisions
- Ensure compliance with terms and conditions governing external borrowings
- Ensure compliance with the requirements of the International KYC Policy
- Ensure compliance money laundering regulations