Page 28 - 86395_CCB - 2024 Annual Report (web)

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The Bank’s principal risks:

Total Risk

Description Total exposure to all types of risk in aggregate.
Governance Board Assets & Liabilities Committee
Strategic Plan Risk Management Committee
Board Risk & Compliance Committee Enterprise Risk Management Framework.

Risk Appetite The Bank takes a conservative approach to risk management, having a low Risk
Statement Appetite for all risk types, apart from Credit Risk, for which the appetite is moderate,
operating within strict parameters/protocols. There are certain types of risk to which
the Bank has no appetite (e.g., fraud), however recognises that instances can and do
occur. The Bank takes active steps to minimise the possibilities of such events arising
and strives to mitigate the impact when they occur, learning from mistakes.

Key Mitigants Monthly assessment by the Chief Risk Officer of the Bank’s overall risk profile,
based on performance against appetite in all risk categories.

Comments The Bank monitors its overall risk profile closely via its governance structure to ensure
that it remains within Risk Appetite, and that it is aligned to delivery of its strategy.

Strategic
Description The risk of having an insufficiently defined or flawed strategy that does not adapt to market and
business developments and/or meet the requirements and expectations of our stakeholders.
Governance Board Executive Committee
Strategic Plan Risk Management Committee
Board Risk & Compliance Committee Enterprise Risk Management Framework
Risk Appetite The Bank maintains a low appetite for Strategic Risk and aims to deliver a satisfactory return on
Statement capital to its shareholders, generating profitable returns and building gross lending balances,
whilst retaining stable asset quality and maintaining a satisfactory cost of risk. The Bank plans to
achieve this within the stated Risk Appetite and regulatory guidelines and deliver high standards
of customer service, demonstrated by above average new business margins and positive
customer experience. The Bank aims to be an employer of choice, ensuring there is the right
mix of skills and experience to grow the business. The Bank works hard to protect its brand,
minimising reputational risk and play an active and responsible part in its local communities.

Key Mitigants Strategy debated at the Board’s Strategy Ongoing review of financial
Day, including Second line challenge. performance against budget.
Ongoing discussion at Risk and Media monitoring/engagement.
Compliance Committee and Board. ESG Framework and activities.
Regular employee, broker,
and customer surveys.
Comments The Bank has a clear strategy, which is monitored effectively.