During the financial year ended March 2015, the Board Integrated Risk Management Committee (BIRMC) of DFCC Bank and DVB were combined to form a Group BIRMC under the permission of the Banking Supervision Department of the CBSL. The Group BIRMC consisted of the necessary representation from both the DFCC Bank and the DVB Board. Representing DFCC Bank, there are 3 Non-Executive Directors and one Executive Director as at 31 March 2015. The Group Chief Risk Officer, who has the voting power, functions as the Secretary to the Committee. Heads of key functional areas such as lending, finance, treasury, operations, IT and internal audit attend the meetings on invitation. The membership of the Group BIRMC as at 31 March 2015 was as follows:
Mr C R Jansz - Chairman of the Committee/Chairman of DVB and DFCC Bank
Mr A N Fonseka- Non-Executive Director of DVB
Mr A Fernando - Non-Executive Director of DVB/ General Manager of DFCC Bank
Mr T Dharmarajah - Non-Executive Director of DVB and DFCC Bank
Mr P M B Fernando - Non-Executive Director of DFCC Bank
Mr L H A L Silva - CEO/Executive Director of DVB
Mr T Fernandopulle - Group Chief Risk Officer
The approved Charter for the BIRMC stipulates authority, structure, responsibilities and tasks of BIRMC. As per its Charter, the primary responsibilities of BIRMC are to review and ensure;
Formulation of the Group BIRMC during the year, strengthened the risk management of DBB while improving the focus on both a holistic and a solo perspective.
The process through which the BIRMC discharges its responsibilities is detailed in the Risk Management section of this Annual Report.
BIRMC meets on a quarterly basis. During the year, DFCC Bank convened four BIRMC meetings. The attendance of members is listed on this table. The committee continued to review policy frameworks, risk management strategies, risk capital position and key risk indicators at these meetings and was satisfied that the risk exposures of the Bank and the Group were being appropriately managed. During the financial year, the following key initiatives were achieved by the Committee.
Several new risk management policies and guidelines were introduced during the financial year, while all existing risk policies and practices were reviewed by the Committee in line with the Bank specific requirements, industry dynamics and regulatory specifications.
The proceedings of the BIRMC meetings are reported to the Board through submission of the meeting minutes. Monthly key Risk Indicators and other specific matters are submitted separately for the Board’s approval on recommendation of the BIRMC. The recommendations made by the BIRMC during the year under review were approved by the Board.
C R Jansz
Chairman – Board Integrated Risk Management Committee
15 May 2015