Introduction________________________________________________________ 3
Risk Culture – what does it mean at Standard Chartered____________________ 3
Business and Risk___________________________________________________ 4
Risk Principles (also refer Database B 101)_______________________________ 5
Risk Types_________________________________________________________ 5
Credit Risk_______________________________________________________ 5
Country Risk (also refer database B 301 and B 326)_______________________ 6
Market and Liquidity Risk (also refer Group Market Risk Policy Database)______ 6
Operational Risk (also refer database B 501)____________________________ 7
Compliance Risk (also refer database B 601 and B 602)___________________ 8
Reputational Risk (also refer database B 701 and J401)____________________ 9
Environmental and Social Risk (also refer database B 204)_________________ 9
Risk Management Framework & Matrix of Responsibilities__________________ 9
Risk Management Organization_______________________________________ 10
Group Level_____________________________________________________ 10
Functional Level_________________________________________________ 11
Country Level___________________________________________________ 11
Risk Policies and Procedures_________________________________________ 11
1. Group Policies_________________________________________________ 11
2. Functional Policies_____________________________________________ 12
3. Country Underwriting Standards___________________________________ 12
Risk Pricing_______________________________________________________ 13
Economic Profit__________________________________________________ 13
Measurement Tools_______________________________________________ 13
Pricing Guidelines________________________________________________ 13
Management of Customers/Counterparties______________________________ 14
Target Customers________________________________________________ 14
Name Lending___________________________________________________ 14
Money Laundering – Know your customer (also refer database B 507 and B 534)14
Types_________________________________________________________ 15
I. CORPORATES_______________________________________________ 15
Groups (also refer database J 202, J 203 and J 206)____________________ 15
Lending to Holding Companies (also refer database J101)_________________ 15
Subsidiary Companies (also refer database J 207)_______________________ 15
II. BANKS____________________________________________________ 16
Banks and Financial Institutions (also refer database J 154, J 155, J 307, J 804 & J 806) 16
III. GOVERNMENTS____________________________________________ 16
Governments and Government Owned Companies (also refer database J 204)_ 16
IV. INVESTMENT INSTITUTIONS__________________________________ 16
Funds, Fund Managers and Hedge Funds (also refer database J 807 and J 808)16
V. PERSONAL BORROWERS____________________________________ 16
Lending to Individuals within Functional level policy (also refer database J 104)17
Products__________________________________________________________ 17
Categories of Risk for Limit Purposes – Category 1,2&3 (also refer database R 201) 17
Suitability, Saleability, Pricing (also refer database J 101, J111)_____________ 18
Specific Requirements (also refer database J 101, J 302, J307)_____________ 18
Specialist Product and Higher Risk Areas (also refer database J 101)________ 18
Restricted Activities (also refer database J 101 and B 702)_________________ 18
Environmental and Social Risk (also refer database B204 and B 226)________ 19
Others (also refer database J 101)____________________________________ 19
Approval Process__________________________________________________ 19
Business Credit Application (also refer database J 151, J154,)______________ 19
Credit Grades (also refer database D 101 and J 206)_____________________ 21
Grading Groups and use of Parental Support (also refer database J 206)______ 22
Regulatory Compliance (also refer database B 202)______________________ 22
Credit Reference Levels (also refer database J 121)______________________ 22
Security (also refer database J 158 and J 616)__________________________ 23
Country Risk (also refer database B 326)______________________________ 23
Approval Authorities (also refer database J 102 & J 152)__________________ 23
Pre Disbursal Process – Control of Lending_____________________________ 24
Securing Documentation (also refer database J175 and J506)______________ 24
Monitoring & Control________________________________________________ 25
Trigger Points (also refer database J 151)______________________________ 25
Early Alert Accounts – (also refer database J 503)_______________________ 25
Accounts Subject To Additional Review (also refer database J 505)__________ 25
Management of Special Assets - GSAM_________________________________ 26
Accounts graded CG 12 (also refer database N 101)______________________ 26
Lessons Learned Review (also refer database N 300)____________________ 26 |