ICICI Bank 2011 Annual Report Download - page 199

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of retail deposit liabilities, in accordance with the regulatory framework at the host countries.
Frameworks that are broadly similar to the above framework have been established at each of the overseas banking
subsidiaries of the Bank to manage liquidity risk. The frameworks are established considering host country regulatory
requirements as applicable.
In summary, the Bank has in place robust governance structure, policy framework and review mechanism to ensure
availability of adequate liquidity even under stressed market conditions.
13. RISK MANAGEMENT FRAMEWORK OF ICICI SECURITIES PRIMARY DEALERSHIP LIMITED
The Board of Directors of the Company maintains oversight on the risk management framework of the Company
and approves all major risk management policies and procedures. The Risk Management Committee of the Board is
responsible for analysing and monitoring the risks associated with the different business activities of the Company and
ensuring adherence to the risk and investment limits set by the Board of Directors.
The risk management function in the Company is managed by the Credit Risk Management Group within the broad
framework of risk policies and guidelines established by the Risk Management Committee.
The risk control framework is through an effective management information system, which tracks the investments as
well as the VaR reports for portfolios. Valuation of instruments is carried out by mid-office as per guidelines issued by
RBI/FIMMDA and other applicable regulatory agencies.
14. RISK MANAGEMENT FRAMEWORK OF ICICI HOME FINANCE COMPANY LIMITED
The Board of Directors of the Company is responsible for the oversight and control of the functioning of the Company
and approves all major policies and procedures of the Company. The Board of Directors has oversight of all the risks
assumed by the company. The Board also functions through various board level and executive committees such as:
a) Audit Committee
b) Management Committee
c) Asset Liability Management Committee (ALCO)
d) Committee of Directors (COD)
e) Committee of Executives (COE)
f) Product & Processes Approval Committee (PAC)
g) Banking Operations and Premises Committee
The policies approved by the Board of Directors form the governing framework for overall risk management. The key
policies in this regard are Asset Liability Management Policy, Investment Policy, Risk Management Policy, Outsourcing
Policy and Anti-Money Laundering Policy. Business activities are undertaken within this framework. Independent support
groups such as Compliance, Policy & Risk, Internal Audit and Legal have been constituted to facilitate independent
evaluation, monitoring and reporting of various risks. These support groups function independent of the business
groups and represent themselves at the various committees.
15. RISK MANAGEMENT FRAMEWORK OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
The risk governance structure consists of the Board, Board Risk Committee (BRC), Executive Risk Committee (ERC) and
its sub committees. The BRC comprises non-executive directors. The ERC, chaired by the Chief Actuary, is responsible
for assisting the Board and the BRC in their risk management duties and, in particular, is responsible for the approval of
all new products launched by the Company.
The Investment Risk Committee assists the ERC in identification, measurement, monitoring and control of market,
liquidity and credit risks. This includes asset liability management through regular monitoring of the equity backing
ratios and asset liability duration mismatch.
The Insurance Risk Committee assists the ERC in identification, measurement, monitoring and control of insurance risks
i.e. demographic and expense risks.
The Operational Risk Committee assists the ERC in identification, measurement, monitoring and control of operational
risks i.e. risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.
BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)
at March 31, 2011