✨ Risk Management Policies
22 NOVEMBER 2013 NEW ZEALAND GAZETTE, No. 154 4312
Schedule 17—Full year
Risk management policies
Contents
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1 Categories of risk..................................................................................... 4312
2 Information about risk.............................................................................. 4312
3 Capital adequacy...................................................................................... 4313
4 Reviews of banking group’s risk management systems........................... 4313
5 Internal audit function of banking group ................................................. 4313
6 Measurement of impaired assets .............................................................. 4313
7 Credit risk mitigation ............................................................................... 4314
8 Additional information about credit risk.................................................. 4314
9 Additional information about operational risk ......................................... 4314
10 Controls surrounding credit risk rating systems..................................... 4315
1 Categories of risk
Clause 2 applies to the following categories of risk:
(a) credit risk, including concentrations of credit risk, intraday credit risk, credit risk to bank counterparties and related party credit risk;
(b) currency risk;
(c) interest rate risk;
(d) equity risk;
(e) liquidity risk;
(f) operational risk; and
(g) any other material risk to which the registered bank’s banking group is exposed.
2 Information about risk
(1) A general description of the registered bank’s banking group’s risk management objectives, policies, strategies and processes, to the extent not otherwise disclosed to comply with paragraph 33 of NZ IFRS 7.
(2) The following information in respect of each of the categories of risk set out in clause 1, to the extent not otherwise disclosed to comply with paragraph 33 of NZ IFRS 7:
(a) an explanation of the nature of the risk and the activities of the registered bank’s banking group which give rise to that risk;
(b) an explanation of the structure and organisation of the relevant risk management function;
(c) a general description of the relevant processes for identifying, measuring and monitoring exposure to the risk, including the frequency with which exposures are monitored and reported; and
(d) a general description of the systems and procedures for controlling the risk, including (if applicable)—
(i) whether exposure limits are employed;
(ii) any policies with respect to collateral or other security;
(iii) any policies on the use of financial instruments to mitigate or hedge risks; and
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NZ Gazette 2013, No 154
✨ LLM interpretation of page content
💰
Insurance and Securitisation Regulations for Banking Groups
(continued from previous page)
💰 Finance & RevenueInsurance business, Securitisation, Funds management, Fiduciary activities, Banking group, Disclosure statement, Financial services, Asset purchases, Arm's length transactions, Fair value