Risk Management

Role of our Organisational Risk Division

Our Organisational Risk Division, a formal autonomous Division, is responsible for the measurement, monitoring and reporting of the Bank’s risk exposures and for monitoring and reporting compliance with limits etc. The Division also measures the return on the Bank’s investment portfolios. The measurement of performance involves the attribution of return across portfolios, sectors and instruments. The Bank’s performance in terms of the return achieved on its portfolios is measured against a notional benchmark portfolio that is compiled externally by Bank of America Merrill Lynch.

The Organisational Risk Division is operationally independent of the dealing function and presents regular reports to the relevant decision-making bodies of the Bank including the Commission, the Commission Audit Committee, the Commission Risk Committee, and the Executive Risk Committee.

In addition to the work performed by the Organisational Risk Division, the Bank’s asset management and monetary policy operations are audited by the Bank’s Internal Audit Division, by the Bank’s external auditors – the Comptroller and Auditor General and RSM Farrell Grant Sparks and by the ECB’s external auditors – Pricewaterhouse Coopers (PwC).

The main risks associated with managing the investment portfolio are;