【正文】 Matrix of Responsibilities In order to ensure that risk is effectively managed when we provide products to our customers, and throughout the period of our relationship with them, it is necessary to have a robust risk management framework in place and have clarity as to roles and responsibilities. The term risk management framework refers to the structure within which the management of risk is effected within an anisation. Building and maintaining this structure requires putting together a mix of the following elements ? methodology for determining risk appetite ? policies and procedures for managing risk ? models for measuring risk . credit grading ? tools for analysing risk . spreading balance sheets Risk Handbook Page 10 ? processes for recording and approving credit requests . Business Credit Application ? the means of delegating and monitoring the use of credit authority ? the management of documentation and limit input ? tools and techniques for monitoring and reporting risk exposures ? the structures for regularly reviewing risk exposures . risk mittees and so on. Just as you can build many different designs of buildings with simple materials such as bricks, steel and cement the above elements can be put together in many binations depending on the nature of the risks involved. The structure varies therefore according to the type of risk – credit, market and country risks are managed in different ways – and even within credit according to the types of counterparty – multinationals, local corporates, banks and financial institutions, governments all have different credit processes. Overall responsibility for ensuring that there is an appropriate risk management framework in place rests with Group Risk. For Wholesale Bank the responsibility lies with the WB Risk Management team. At country level the SCO will ensure that its requirements are operating effectively. As an officer of the bank, is it your responsibility to ensure that you are aware of the business strategy and underwriting standards in your area. You must also be aware of the policies and procedures that are relevant to the area in which you are working and ensure that you work within their spirit as well as to their letter. Ignorance is no defence so ask if you are unsure how things are supposed to operate in your location and what your authorities are. Risk Management Organization As mentioned earlier, the risk management anization operates at three levels, group, functional and country. Group Level Group Risk (GRM) largely based in London has responsibility for ensuring that risk across SCB is recognized and managed effectively. It is a support function reporting to an independant Group Executive Director. It ensures that the overall risk management framework is operating effectively. This is done, for example, by putting in place high level Group policies (see section B of the Notes database or the Group Risk pages of SCyBer), involvement in significant risk decisions including business strategy and budgets, overviewing actual exposures and involvement in the various risk mittees. Functional Level The members of the Function (either WB or CB) risk team based in Singapore have similar responsibilities as GRM but their focus is solely on the function or business they manage. The main differences are the scope of this responsibility is narrower and they must operate within the confines of the authorities given to them and within Risk Handbook Page 11 Group policy boundaries. The risk team will therefore define policies and procedures appropriate to the function and monitor the performance of the business within their area of responsibility. The risk team is independent of the business but work very closely with them. Their remit is global applying equally to countries managed on a segmented and nonsegmented basis. Country Level At the country level the SCO for a business is responsible for ensuring that risk is managed effectively by setting local risk boundaries, underwriting standards, and ensuring that risk is taken on within those boundaries and that Group and WB policy and procedural requirements are plied with. Other support functions, which impact on WB risk, are: Group Special Assets Management – this unit is responsible for management of delinquent or potentially delinquent accounts to maximise recoveries and minimise losses. It is an independent function, which works very closely with WB and GRM. Audit – the Group Audit function check that policies and procedures are being plied with by operating units and is an independent function so as to ensure no conflict of interest. Risk Policies and Procedures To define, regulate and monitor the activities of the bank, various policies and procedures have been put in place. These are available in the Notes database under “Risk Policies and Procedures Database” and in SCyBer on the Group Risk web page under “Policies and Procedures”. These are the set of rules and guiding principles covering the provision of credit and related activities and also describe the processes and procedures within the bank. These policies and procedures enpass a wide range of risks (Credit, Co。s earnings and capital due to changes in the market level of interest rates, securities, foreign exchange and equities, as well as the volatilities of those prices. Group Market Risk prescribes the unified framework for the assessment and control of market price risk. A risk monitoring limit and reporting structure is set out for portfolios of products, instruments, and ine streams, where the economic value is directly or indirectly sensitive to changes in variable market prices, such as spot foreign exchange or interest rates. 2. Liquidity risk management invol