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| RISK MANAGEMENT |
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RISK MANAGEMENT DEPARTMENT
Noor Financial Investment Company has a dedicated Risk Management Department which acts as the custodian of company’s risk architecture and its management within the prescribed policy limits. The Department is headed by a Director who reports directly to the Risk Management Committee of Company’s Board of Directors. Our Risk Management team is responsible for designing and implementing structures, processes and methods used in financial and non financial risk management with an aim to develop practical and applicable solutions that are compatible with our corporate risk statement and principles.
The principal aim of our risk management setup is to secure our financial strength while ensuring that capital is well deployed to support business activities and maximize shareholder value. The risk management architecture for Noor comprises of a detailed risk charter including risk strategy and risk governance framework. Our key risk management committees, systems and procedures ensure that risks are managed within limits set in a transparent and timely manner. The main responsibilities of Risk Management Department include:
- Implementing and maintaining appropriate risk management principles and policies, internal controls and processes designed to identify and address unacceptable risk as determined by the Committee.
- Establishing an integrated risk management framework to measure and manage all aspects of risk. These risks include credit risks such as lending and counterparty exposures; market risks such as interest rate, foreign exchange, equity and commodity exposures; business risks such as volatility in volumes, margins, or costs; and operational risks ranging from day-to-day processing errors to fraud and other low probability but high severity events.
- Ensuring that appropriate and effective risk management processes are in place within their designated area(s) and scope of responsibility.
- Ensuring that all employees are made aware of the risks within their work environment and of their personal responsibilities.
- Preparing specific Directorate/Departmental policies, procedures and guidelines to ensure all necessary risk assessments are carried out within their directorate/department in liaison with appropriate identified relevant advisors where necessary.
- Implementing and monitoring any identified and appropriate risk management control measures within their designated area(s) and scope of responsibility.
- Ensuring that all employees are given the necessary information and training to enable them to undertake effective risk management practices.
- Reporting regularly pertinent information, including recommendations made, to the CEO and the Board of Directors that support the proactive management of risk.
RISK MANAGEMENT COMMITTEE
The Board of Directors of Noor Financial Investment Company has responsibility for identifying all risks faced by the Company, and for ensuring that the required corporate governance structures, culture, practices and systems are in place to identify, monitor and manage risk. For this purpose, Board has constituted a Risk Management Committee that controls and decides on all the matters related to the identification and management of financial, non-financial and operational risks of the Company on a corporate level. The Committee also reviews and recommends changes to the Board as needed to ensure that the Company has in place at all times a Risk Management Policy that addresses the Company’s exposure to credit risk, market risk, liquidity risk, business risk, and operation risk that conforms to regulation and risk management best practices.
Specifically, the Risk Management Committee is responsible to:
- Identify & Prioritize Business Risks - review the Company’s risk register to understand the current risk environment for the Company, including review of emerging risks, the interrelationships between risks, and in the context of Company’s risk appetite;
- Evaluate the Effectiveness of Risk Mitigation Activities - review risk mitigating strategies for effectiveness and consistency with Company’s risk tolerance;
- Ensure Gaps in Effectiveness are Addressed for High Priority Risks - provide direction for the allocation of resources and assignment of responsibilities for activities addressing business risks;
- Improve Enterprise Risk Management (“ERM”) Infrastructure - provide guidance regarding ERM infrastructure, including systems, processes, and organizational structure.
At Noor Financial Investment Company we ensure that a well integrated IT based risk management system is in place which provides run-time quantitative analysis and integrated reports related to the assessment and management of all the relevant risks.
QUERIES
For any queries regarding Company’s Risk Management practices, you may contact:
Christoph Flefel
Noor Financial Investment Company
christoph@noorinvestment.com |
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