Risk Management Guidelines for Commercial Banks & DFIs.

Table of Contents
Page No. Introduction
Defining Risk Risk Management Board & Senior Management oversight Risk Management Framework Integration of Risk Business Line Accountability Risk Evaluation / Measurement Independent Review Contingency Planning

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Managing Credit Risk
Components of Credit Risk Management Board & Senior Management oversight Organization Structure Systems and Procedures Credit origination Limit setting Credit Administration Measuring Credit Risk Internal Risk Rating Credit Risk Monitoring & Control Risk Review Delegation of Authority Managing Problem Credits

Managing Market Risk

Interest Rate Risk Foreign Exchange Risk Equity / commodity price Risk Element of Market Risk Management Board and Senior Management Oversight Organization Structure Risk Management Committee ALCO Middle Office Risk Measurement Repricing Gap Models Earning at Risk &Economic Value of Equity Models Value at Risk Risk Monitoring Risk Controls Audit

Risk limits

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Managing Liquidity Risk
Early Warning Indicators Board and Senior Management Oversight Liquidity Risk Strategy and Policy ALCO/ Investment Committee Liquidity Risk Management Process MIS Liquidity Risk Measurement & Monitoring Contingency Funding Plan Cash Flow Projections Liquidity Ratios & Limits Internal Controls Monitoring & Reporting Risk Exposures

Managing Operational Risk

Operational Risk Management Principles Board & Senior Management Oversight Operational Risk Function Risk Assessment and Quantification Risk Management & Mitigation Risk Monitoring Risk Reporting Establishing Control Mechanism Contingency Planning.

Introduction