Tuesday, 05 November 2024
All submissions will be evaluated on their own merit and considered for the most appropriate awards. Submissions may be considered for multiple awards as well.
Achievement in Climate Risk Management
The Asian Banker believes that financial institutions taking initiatives with climate risk management can tie long term societal goals with decision making of clients, employees, and shareholders. This award recognises financial institutions that have effectively began to assess and understand their exposure to climate risk, including the physical, transition, and liability risks associated with a changing climate and have started implementing effective strategies to manage their exposure to climate risk, including the use of mitigation, adaptation, and disclosure strategies.
Achievement in Credit Risk Management
This award recognizes financial institutions that have successfully managed credit risk, demonstrating their ability to assess and manage the risk associated with lending and borrowing activities. The Asian Banker believes that institutions with exemplary credit risk management are equipped with effective credit scoring systems where loans are only made to credit-worthy borrowers while avoiding excessive leveraging on its pool of deposits. Strong credit risk ratios must be reflected from their balance sheets. Institutions should also use risk analytics effectively for predictive and reactive analysis.
Achievement in Enterprise Risk Management
This award recognises financial institutions that can identify, assess, and manage risks across their entire enterprise by considering risks and opportunities from different perspectives, such as strategic, operational, financial, and compliance-related ones that could impact a financial institution’s mission objectives. The Asian Banker believes that institutions with exemplary enterprise risk management (ERM) can withstand changing political, economic, regulatory, and global market conditions to comply with their strategic objectives. The organisation would have demonstrated integration of its risk capabilities and coordination efforts, forming the core of a robust enterprise risk framework.
Achievement in Liquidity Risk Management
The Asian Banker believes that effective liquidity risk management (LRM) is critical for financial institutions to maintain their financial stability, meet their obligations, and sustain their operations over time. Institutions with exemplary liquidity risk management are well-equipped to address unforeseen cash flow constraints. Three liquidity management functions that are of particular interest in our assessment are day-to-day cash management, longer-term cash flow management as well as liquidity risk management in times of crisis. Moreover, the institution’s balance sheet must reflect stable and healthy liquidity that is complemented with success in generating deposit growth.
Achievement in Market Risk Management
This award recognises banks that have effectively managed market risk, such as interest rate risk, currency risk, and commodity risk, demonstrating their ability to anticipate and respond to market fluctuations. Moreover, they must possess the capability to cope with crises that is evidenced by stress testing results. Sound market risk management processes and monitoring tools must also be put in place. Additionally, institutions should also use risk analytics effectively for predictive and reactive analysis.
Achievement in Operational Risk Management
This award recognises financial institutions that successfully manage operational risks, demonstrating the ability to hold enough capital to cover potential operational risk exposure, and identify and mitigate these risks effectively. It also recognizes the critical importance of trust, confidence, and reliability in the banking industry. Financial institutions that demonstrate exceptional operational risk management capabilities are well positioned to enhance their brand and reputation, and to maintain the trust and confidence of their customers and stakeholders. In addition, operational risks can significantly affect an institution's profits and may include system malfunctions, data breaches, internal fraud, business process disruptions, as well as losses resulting from failed transaction processing and vendor-related process management. This award excludes operational risk incidences from cyberattacks. The Asian Banker recognises that exemplary operational risk capabilities of institutions stem from their strong governance, monitoring, and reporting processes, which facilitate the swift detection, mitigation, and restoration of operational incidents.
Achievement in Cybersecurity Risk Management
This award recognises initiatives in financial institutions that have successfully protected their critical assets, sensitive data, and interconnected systems from cybersecurity threats. We believe that exceptional cybersecurity risk management practices involve implementing and updating robust security protocols, performing regular vulnerability assessments and penetration testing, monitoring systems continuously for anomalies, providing regular cybersecurity awareness training for employees, having a strong representation at the board level, and promptly responding to incidences.
