Page 28 - CCB_Full-Annual-Report-2021

28 Strategic Report 29

Contents
Contents

original and 2020 new transitional relief Risk Management
2021 arrangements, this relief reduced in 2021
reflecting the scheduled reduction in Approach to risk, enterprise risk management Strategic Report
Common Equity the original transitional relief factor from framework and accountability
Tier 1 capital ratio 70% to 50%. The Enterprise Risk Management Framework

remains strong at The Bank continues to benefit from its is the structure which underpins the Bank’s
robust approach to risk management, founded
British Business Bank ‘Enable’ Guarantee
19.9 % facility. The guarantee provides the Bank on the effective identification, assessment,
control and management of risk, and strong
with a facility to support up to £50m
of commercial loans. The guarantee,
which for regulatory reporting purposes risk management culture. It sets out the key
principles, key tools, governance structure
is treated as a synthetic securitisation, and roles and responsibilities in relation to risk
2020
enables the Bank to risk weight the loans management, across all risk categories. Corporate Governance Statement
20.7 % within the guarantee at 0%. This benefit
is partially offset by the cost of the first
loss tranche which is reported as a
capital deduction of £1.7m.

The Bank’s capital ratios exceeded its
regulatory requirements throughout Strategy
the year. Culture
Board and Board Committees Risk Appetite
The Bank’s Common Equity Tier 1 KRIs
capital ratio (including the impact of ICAAP/ILAAP
the transitional arrangements) at the
31 December 2021 was 19.9%, (2020:
20.7%). The Bank’s total capital ratio Audit Independent Assurance Independent Auditor’s Report
(including the impact of the transitional
arrangements) at 31 December 2021
was 23.0% (2020: 24.3%). The Bank’s Detailed Review including
Common Equity Tier 1 capital ratio and more granular metrics; ICAAP/ILAAP
total capital excluding the transitional Executive Committees
arrangements were 19.2% and 22.4% at Credit Approval and Risk Oversight
31 December 2021 respectively. Top and Emerging Risks

Documentation
(Frameworks, Policies and Protocols; Taxonomy) Financial Statements
Horizon Scanning
Risk Oversight (regulatory reporting and leading practices)
Review and Challenge
Scenarios and Stress Testing
Quality Assurance

Credit Grading Models
IFRS 9 Model
Initial and Annual Credit Reviews
Risk Tools Watch List and Early Warning List
and Methods Notes to the Financial Statements
Event Reporting
Risk and Control Self Assessment
Risk Register; Top and Emerging Risks Workshops