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THE COMPARATIVE ANALYSIS OF RISK MANAGEMENTbetween (based on the risk disclosure of 2011)

INTRODUCTIONRISK MANAGEMENT STRATEGYRisk management processesCredit Risk Process

Identify credit risk of transaction

Select asset & portfolio mixInternal credit rating models PD, LGD, EAD A-IRB F-IRB Standardised approach for other. Portfolio limits , counterparty limits, benchmark returnsCollateral and tailored structures

Monitor and report portfolio mixReview customer under Watchlist Undertake post morterm review

Internal credit rating system Probability of default (PD) Loss given default (LGD) Exposure at default (EAD)

Market Risk Process

Identify market risk within existing and new products

Review market related information such as market trends and economic dataValue At Risk (VaR)Other risk measures (PV01)Stress testing & scenario analysisVaR limits Model & valuation controls

Periodical review & reporting VaRAnnual lost limit (ALL)Historical stress lost (HSL)Other detail management control.Var limitHsl limitLoss limitConcentration limits Greek limitsPresent value of one basis point limits (PV01)Stealth limits Others

Monitor limitsPeriodical review & reporting

Liquidity Risk Process

Identify liquidity risk within existing and new business activities

Review market related information such as market trends and economic dataLiquidity risk limitStress testing & scenario analysisContingency funding plan

Periodical review & reporting New liquidity framework (NLF) limitLiquidity concentration ratiosLiquidity coverage ratios (LCR) Financing to deposit ratio mn(FDR) Other detail Monitor limitsPeriodical review & reporting

Operational Risk ProcessIdentify and analyse risk in key processes/ activities within line of business

Incident management & data collection

Risk and control self assessment

Key risk indicators

Key control testing Policies addressing control and governance requirements to mitigate specific operational risk

Advisory establishment of internal control

Contingency planning Monitoring & reporting of loss incidents by event type, portfolio and line of business and entity, reporting of GRAF management triggers, risk profile status, key risk indicator breaches and key control testinf exceptions.

Periodical review of risk profile within line of business

Operational Risk Process Cont.

Shariah risk Corporate governance BOARD RESPONSIBILITY AND OVERSIGHTBANKDIRECTORSINDEPENDENT NON-INDEPENDENTOCBC53AmIslamic48Shariah Governance

SHARIAH GOVERNANCE STRUCTURE

Shariah Committee Report