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
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