Risk Management

Risk Management has five key principles which are intended to support CBE in achieving an appropriate balance between risk and return. These principles are:

  1. Reputation protection which depends, among other things, on effective management and control of risks.
  2. Protection of financial strength by controlling our overall risk exposures and assessing potential risk in combination across all risk types and functions.
  3. Business management is accountable for all risks and is responsible for the continuous and active management of risk exposure to ensure that risk is mitigated and controlled.
  4. Independent control of risk through audit, which monitors the effectiveness of business risk management and oversee risk taking activities.
  5. Disclosure of risk to provide comprehensive, transparent and periodic reporting to senior management, the BoD, Internal Audit Committee and other stakeholders.

Our risk management principles are implemented via a risk management framework. It comprises qualitative elements such as policies and authorities, and quantitative components including risk measurement and limits. It is dynamic and is adapted as CBE's activities and the market environment evolve. It includes clearly defined processes to deal with new business initiatives and special nature transactions.


Senior Management is responsible for determining CBE's risk principles, risk appetite and major portfolio limits, including the allocation of certain of these limits to the business sectors. CBE Chief Risk Officer “CRO” reports directly to the Deputy Governor and has functional and management authority over risk & control throughout CBE. Risk Management is responsible for implementing risk processes for credit risks, middle office and operational risks, and to ensure that all investment guidelines are implemented through Reserve Management Unit's transactions.​​