Risk Management Committee Charter
Introduction

 

The Risk Management Committee has been established by resolution of the Board of Directors of KASIKORNBANK PUBLIC COMPANY LIMITED (“the Bank”) at the Meeting No 3/2003, held on April 3, 2003.

 

Purpose

 

The Risk Management Committee (“the Committee”) has been established with the duty to assist the Board of Directors in its responsibility to oversee that the overall risk management process is at appropriate level. The Committee is to make sure that the KASIKORNBANK FINANCIAL CONGLOMERATE (“the Financial Conglomerate”) possesses efficient and effective risk management plan that covers all types of risks.  In addition, the Committee is responsible for setting, assessing, reducing, monitoring and reporting risk levels for the attention of the Board of Directors.

 

Objective

 

In performing its duties, the Risk Management Committee shall maintain effective working relationship with the Board of Directors to ensure efficient and effective risk management operation by the Financial Conglomerate. Each committee member must fully appreciate his or her responsibilities, as detailed in the Bank’s Articles of Association. He or she must be knowledgeable in banking and financial business as well as the risk management operation and control process of the Financial Conglomerate.

 

Risk Management Committee Structure

 

     1.       The Risk Management Committee is appointed by the Board of Directors.

     2.       The Risk Management Committee comprises of not less than 7 members consisting of Bank directors and/or suitable executives, being the combination that can ensure effective coverage of the overall risk management operation of the Financial Conglomerate.

     3.       In order to constitute a quorum, there shall be not less than half of the members of the Risk Management Committee.

     4.       The Board of Directors shall appoint the Chairman of the Risk Management Committee from members of the Board of Directors.

     5.       The Chairman of the Risk Management Committee shall appoint the Secretary to the Risk Management Committee.

     6.       The Committee shall hold at least one meeting a month, and there may be additional meeting as necessary.

     7.       The Risk Management Committee may, when necessary, invite other persons, who are involved with or responsible for any matters related to the meeting agenda, to participate in the meeting.

     8.       The Risk Management Committee shall be in office for a two-year term. A member, whose term has expired, can be re-appointed   by the Board of Directors to resume duty in the Committee.

     9.       It is the duty of all committee members to participate in the meeting, either in person or by means of telephone conference method. (Participation in the Meeting via telephone conference method shall not be counted for a quorum.)

     10.   The Committee may acquire the service of independent professional advice, when necessary, at the Bank’s expense, under prior approval by the Board of Directors.

     11.   The Secretary to the Risk Management Committee shall be responsible for the preparation for the Committee meeting, the meeting arrangement, the preparation of the agenda and pertinent meeting documents and the delivery of the meeting agenda and related documents to all committee members, in sufficient time for the members to be able to review all the particulars in details, or to request for additional information, if required, before the meeting. After each meeting, the Secretary shall submit the minutes of the meeting to all committee members within seven business days.  The minutes are to be approved in the next committee meeting.

 

Authorities, Duties and Responsibilities

 

     1.       The Risk Management Committee has the authority to make decisions on any undertakings within the scope of its responsibilities as stipulated in the Risk Management Committee Charter, with accessing authority to all pertinent information. 

     2.       The Committee shall formulate the Financial Conglomerate risk management policy to present to the Board of Directors for the consideration of overall risk management. This must cover the various types of risk, i.e. strategy, liquidity, credit, market, operational or other significant risks to the Financial Conglomerate.

     3.       The Committee shall formulate the strategy on the organization and resources to be used for the risk management operation, in line with the risk management policy of the Financial Conglomerate.  This strategy must enable the effective analysis, assessment, evaluation and monitoring of the Financial Conglomerate risk management.

     4.       The Committee shall set the risk limits for the significant aspects of the various risks to be submitted for the consideration of the Board of Directors.  

     5.       The Committee shall oversee, review and provide recommendations to the Board of Directors with regard to risk management policy, standard procedure, strategy and overall risk measurement to ensure that the risk management strategy is being properly implemented.

 

Reporting Responsibilities

 

     1.       Reporting to the Audit Committee
The Risk Management Committee shall regularly report risk status and any changes that impact on risk appetite to the Audit Committee to ensure that risk management has been implemented efficiently and effectively according to approved risk management policy and strategy.

     2.       Reporting to the Board of Directors
The Risk Management Committee must report directly to the Board of Directors on the following matters:
               2.1  Impact of portfolio exposure and changes in risk frameworks, including effects from changes in policies and new product

          developments;
               2.2  Status of risks and changes on the risk appetites at appropriate time;
               2.3  Make sure that the Board of Directors is informed and made aware of the factors likely to have significant impacts on the

           Financial Conglomerate risk status.

     3.       Reporting to the Shareholders
The Risk Management Committee shall prepare its annual report to be presented to the Annual General Meeting of Shareholders in the name of the Board of Directors as a part of, or an annex to the Bank’s annual report and financial statements.

 



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