Article 38
| No: 2/MFC | Date(g): 24/2/2013 | Date(h): 14/4/1434 |
Effective from Feb 24 2013 - Mar 07 2013
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The Finance Company must:
| 1. | Establish a clear written business strategy and a written risk management policy approved and updated annually by the Board. The risk management policy should take into account all relevant types of risks and how to deal with them, taking into consideration all business activities, including operations and tasks that have been outsourced. The risk management policy must include analysis for at least the following risks: | |||||
| a. | Credit risks; | |||||
| b. | Market risks; | |||||
| c. | Term Cost rate risks; | |||||
| d. | Incompatibility of assets with liabilities risks; | |||||
| e. | Exchange rate risks; | |||||
| f. | Liquidity risks; | |||||
| g. | Operational risk; | |||||
| h. | Country risks; | |||||
| i. | Legal risks; | |||||
| j. | Reputation risks; | |||||
| k. | Technology risks. | |||||
| 2. | Establish appropriate procedures to identify, assess, manage, monitor and communicate risks. These processes must be included in a comprehensive risk management framework that ensures the following: | |||||
| a. | Early and comprehensive identification of risks; | |||||
| b. | Assessment of correlations between risks; and | |||||
| c. | Immediate coordination with Senior Management, the Board, risk and credit management committee and the responsible staff, and where appropriate, the internal audit department. | |||||
| 3. | Establish a risk management function directly reporting to the risk and credit management committee. Risk and credit management committee must raise their views about risk management reporting to the Board. | |||||