ICICI Bank 2013 Annual Report Download - page 18

approaches under Basel II and implementation of Basel III, risk return profile of the Bank, outsourcing
activities, compliance with RBI guidelines pertaining to credit, market and operational risk management
systems and the activities of the Asset Liability Management Committee. The Committee reviews
the level and direction of major risks pertaining to credit, market, liquidity, operational, compliance,
group, management and capital at risk as part of risk profile templates. In addition, the Committee has
oversight on risks of subsidiaries covered under the Group Risk Management Framework. The Risk
Committee also reviews the Liquidity Contingency Plan (LCP) for the Bank and the threshold limits.
• Apart from sanctioning credit proposals, the Credit Committee of the Board reviews developments in
key industrial sectors and the Bank’s exposure to these sectors as well as to large borrower accounts
and borrower groups. The Credit Committee also reviews the major credit portfolios, non-performing
loans, accounts under watch, overdues and incremental sanctions.
• The Audit Committee of the Board provides direction to and monitors the quality of the internal audit
function and also monitors compliance with inspection and audit reports of Reserve Bank of India,
other regulators and statutory auditors.
• The Asset Liability Management Committee is responsible for managing liquidity and interest rate risk
and reviewing the asset-liability position of the Bank.
Summaries of reviews conducted by these Committees are reported to the Board on a regular basis.
Policies approved from time to time by the Board of Directors/Committees of the Board form the
governing framework for each type of risk. The business activities are undertaken within this policy
framework. Independent groups and sub-groups have been constituted across the Bank to facilitate
independent evaluation, monitoring and reporting of various risks. These groups function independently
of the business groups/sub-groups.
The Bank has dedicated groups, namely, the Risk Management Group, Compliance Group, Corporate
Legal Group, Internal Audit Group and the Financial Crime Prevention & Reputation Risk Management
Group, with a mandate to identify, assess and monitor all of the Bank’s principal risks in accordance with
well-defined policies and procedures. The Risk Management Group is further organised into the Credit
Risk Management Group, Market Risk Management Group and Operational Risk Management Group.
These groups are completely independent of all business operations and coordinate with representatives
of the business units to implement ICICI Bank’s risk management policies and methodologies. The
internal audit and compliance groups are responsible to the Audit Committee of the Board.
CORPORATE GOVERNANCE
The corporate governance framework at ICICI Bank is based on an effective independent Board, the
separation of the Board’s supervisory role from the executive management and the constitution of Board
Committees, generally comprising a majority of independent Directors and chaired by independent
Directors, to oversee critical areas.
I. Philosophy of Corporate Governance
ICICI Bank’s corporate governance philosophy encompasses regulatory and legal requirements, such
as the terms of listing agreements with stock exchanges which aims at a high level of business ethics,
effective supervision and enhancement of value for all stakeholders. The corporate governance framework
adopted by the Bank already encompasses a significant portion of the recommendations contained
in the ‘Corporate Governance Voluntary Guidelines 2009’ issued by the Ministry of Corporate Affairs,
Government of India.
Directors’ Report
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