Risk Management Disclosures

Winner:

The Mauritius Commercial Bank Ltd. (“MCB”)

The Risk Management Disclosures Award was remitted to Mr Anthony Withers, Chief Executive, Banking, by Mrs Jane Valls, CEO of the Mauritius Institute of Directors, which is the sponsor of this award.

The MCB has been forthcoming and transparent in its risk disclosures.  It provided more information on its credit risk exposures, charting its exposures by credit rating and showing how such exposures have changed from the prior year.  It explained in a clearer manner the way it manages risk and the tools it uses to assess and measure market risks. Compared to the prior year, it elaborated further on the stress testing it has carried out during the year.

Assessment Criteria:

Annual Reports were then assessed against the quality of their disclosures with regards to:
• Risk Management Strategy
• Risk Management Organisation & Effectiveness
• Risk Assessment
• Risk Profile
• Risk Monitoring
• Presentation aspects

Comments from the Judging Panel

What we liked...

There is a better balance between graphs, charts, illustrations and narratives.

We liked the standard set by banks but were disappointed with the disclosures of Insurance companies with regards to their description and management of insurance risks.  
Most entities discussed sufficiently about their significant risks and described their risk governance structures and objectives.

Recommendations...
• Declare your risk appetite
• Provide more insights on your risk identification and assessment process
• Better linkage between drivers of risks and mitigating measures undertaken and results
• Avoid templates
• Have your risk assessment process assured by independent consultants