| (1) |
Subject to subsection (3) the board of directors of a bank and controlling company shall appoint at least three of its members, of whom at least two are non-executive directors, to form and serve on a risk and capital management committee. |
| (2) |
The functions of the risk and capital management committee shall be to assist the board of directors— |
| (a) |
in its evaluation of the adequacy and efficiency of the risk policies, procedures, practices and controls applied within that bank or controlling company in the day-to-day management of its business; |
| (b) |
in the identification of the build up of and concentration of the various risks to which the bank or controlling company is exposed; |
| (c) |
in developing a risk mitigation strategy to ensure that the bank or controlling company manages the risks in an optimal manner; |
| (d) |
in ensuring that a formal risk assessment is undertaken at least annually; |
| (e) |
in identifying and regularly monitoring all key risks and key performance indicators to ensure that its decision-making capability and accuracy of its reporting is maintained at a high level; |
| (f) |
to facilitate and promote communication, through reporting structures, regarding the matters referred to in paragraph (a) or any other related matter, between the board and the executive officers of the bank or controlling company; |
| (g) |
to establish an independent risk management function, and in the case where the bank or controlling company forms part of a group, a group risk management function, the head of which shall act as the reference point for all aspects relating to risk management within the bank or controlling company, including the responsibility to arrange training of members of the board in the different risk areas to which that bank or controlling company, is exposed; |
| (h) |
to introduce such measures as may serve to enhance the adequacy and efficiency of the risk management policies, procedures, practices and controls applied within that bank or controlling company; |
| (i) |
to co-ordinate the monitoring of risk management on a globalised basis; |
| (j) |
to establish and implement a process of internal controls and reviews to ensure the integrity of the overall risk and capital management process; |
| (k) |
to establish and implement policies and procedures designed to ensure that the bank or controlling company identifies, measures and reports all material risks; |
| (l) |
to establish and implement a process that relates capital to the level of risk; |
| (m) |
to establish and implement a process that states capital adequacy goals with respect to risk, taking account of the bank's strategic focus and business plan; and |
| (n) |
to perform such further functions as may be prescribed. |
| (3) |
The Authority may upon written application exempt the board of directors of a bank from the duty to appoint a risk and capital management committee in respect of a bank if the Authority is satisfied that the risk and capital management committee appointed in respect of the relevant controlling company, in addition to its responsibilities in respect of that controlling company, is able to also adequately assume the responsibilities of a risk and capital management committee in respect of that bank. |
[Section 64A substituted by section 18 of Act No. 20 of 2007]
Medicines and Related Substances Act, 1965
