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VCBank maintains a prudent and disciplined approach to risk taking, and considers risk management to be an integral part of the Bank’s decision-making process.
Risk Management Framework
The Board of Directors of VCBank through its Risk Committee (RC) (a sub-committee of the Board of Directors), has the responsibility for ensuring the establishment and effective implementation of a risk management framework. Further, the Risk Management Department (RMD) is empowered to identify, evaluate and mitigate risk however, and wherever, it may arise from the business and operating activities of the Bank, and through regular reporting to the RC, is able to ensure that policy remains aligned with the risk appetite of the Board.
Investment risk
The RMD evaluates the business risks of all potential investments at an early stage of the due diligence process. Formulated in close co-operation with the respective deal teams, these risk evaluations support the decision-making process through both a qualitative and a quantitative analysis, the latter applying sophisticated risk modeling techniques to the financial projections of the target company (or real-estate development project) in order comprehend inherent risk by attributing estimates of likelihood to a multitude of possible investment outcomes.
Operational risk
VCBank is committed to the Implementation of its Operational Risk Management (ORM) framework to meet the 2008 regulatory requirements of the Central Bank of Bahrain. VCBank’s ORM framework will ensure risk management discipline to enhance the efficiency of its end delivery of added value, which is its promise to shareholders. At its core is a close and on-going dialogue between the RMD and each business and support unit in order to protect shareholder value through the identification, assessment, mitigation and monitoring of all operational risks.
Capital Adequacy
The Bank’s Risk-Asset-Ratio at 31 December 2006 was 69 per cent, with the capital increase in 2007 it reached 86%. This indicates a robust and flexible capital base offering significant potential for leverage and business expansion to pursue further valuable investment opportunities in the future.
Risk Philosophy
The Bank strongly believes that while much emphasis continues to be placed on the use of sophisticated techniques to identify, measure and mitigate risk, it is through a robust corporate governance structure, and the leveraging of the collective experience of a disciplined management team, that the Bank expects to minimise risk at its very source.
Risk Management Framework
The Board of Directors of VCBank through its Risk Committee (RC) (a sub-committee of the Board of Directors), has the responsibility for ensuring the establishment and effective implementation of a risk management framework. Further, the Risk Management Department (RMD) is empowered to identify, evaluate and mitigate risk however, and wherever, it may arise from the business and operating activities of the Bank, and through regular reporting to the RC, is able to ensure that policy remains aligned with the risk appetite of the Board.
Investment risk
The RMD evaluates the business risks of all potential investments at an early stage of the due diligence process. Formulated in close co-operation with the respective deal teams, these risk evaluations support the decision-making process through both a qualitative and a quantitative analysis, the latter applying sophisticated risk modeling techniques to the financial projections of the target company (or real-estate development project) in order comprehend inherent risk by attributing estimates of likelihood to a multitude of possible investment outcomes.
Operational risk
VCBank is committed to the Implementation of its Operational Risk Management (ORM) framework to meet the 2008 regulatory requirements of the Central Bank of Bahrain. VCBank’s ORM framework will ensure risk management discipline to enhance the efficiency of its end delivery of added value, which is its promise to shareholders. At its core is a close and on-going dialogue between the RMD and each business and support unit in order to protect shareholder value through the identification, assessment, mitigation and monitoring of all operational risks.
Capital Adequacy
The Bank’s Risk-Asset-Ratio at 31 December 2006 was 69 per cent, with the capital increase in 2007 it reached 86%. This indicates a robust and flexible capital base offering significant potential for leverage and business expansion to pursue further valuable investment opportunities in the future.
Risk Philosophy
The Bank strongly believes that while much emphasis continues to be placed on the use of sophisticated techniques to identify, measure and mitigate risk, it is through a robust corporate governance structure, and the leveraging of the collective experience of a disciplined management team, that the Bank expects to minimise risk at its very source.
