Risk Management Governance and Framework


چارچوب حاکمیت ریسک

The Board oversees the Bank’s overall corporate governance framework, safeguarding that MEB’s business activities are:

  • Consistent with the Bank’s overall business strategy.
  • In line with the Bank’s risk appetite.
  • Subject to internal controls and adequate risk management monitoring.

The Risk Committee (RC) meets on a regular basis and consists of two Board members, independent members and the Senior Risk Manager (SRM). The SRM is responsible for reporting material risk-related issues to other members of the RC, as well as executing various resolutions issued by the RC.

In addition to the Risk Committee, the Bank relies on various other senior management committees to make high-level business decisions with due regards to risks and returns. These comprise of the Board Committee, Executive Committee, Asset and Liability Committee (ALCO), Central Credit Committee and Supreme Credit Committee.

Risk Management Governance at MEB follows the standard of “Three Lines of Defense”.
  1. We classify all risk bearing units as the “First Line of Defense”. These units are the owners of the risk generated through their activities and responsible to properly identify and manage such risks.
  2. The Risk Management and Compliance functions act as the “Second Line of Defense”. The Risk Management function oversees and controls the risk taking activities of the bank. It interfaces with the first line of defense to prevent unacceptable exposures or breaches in risk limits. The Senior Risk Manager regularly reports the status of risk exposures, risk limit breaches and changes to the risk bearing capacity of the Bank to the Risk Committee as well as the Board.
  3. The Internal Audit and Controls Department (referred to as the “Third Line of Defense”) oversees all the units of the bank (including Risk Management and Compliance), reporting directly to the Board.

For more information, see the “Risk Management Structure and Responsibilities” section within the Pillar 3 Regulatory Capital Disclosure.