ICICI Bank 2013 Annual Report Download - page 205

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country regulatory requirements as applicable. Besides, as per local regulatory requirements, ICICI Bank UK PLC
has implemented its Individual Liquidity Adequacy Assessment (ILAA) framework, which stipulates the level of
liquidity required to meet the UK regulatory requirements and the liquidity commensurate with the risks identified
in its portfolio and strategic plans.
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 Corporate 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 delegates authority to various committees responsible for
managing the day-to-day activities such as:
a) Audit and Risk Management Committee
b) Management Committee
c) Asset Liability Management Committee
d) Committee of Directors
e) Committee of Executives
f) Product & Processes Approval Committee
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, Anti-Money Laundering
Policy, Risk Management Policy, Credit & Recovery Policy, Credit Approval Authorisation Manual, Operational Risk
Management Policy and Outsourcing Policy. Business activities are undertaken within this framework. Independent
support groups such as Compliance and Policy & Risk have been constituted to facilitate independent evaluation,
monitoring and reporting of various risks. Additionally, independent functions such as internal audit & legal are
supported by the Internal Audit Department & Corporate Legal Group of ICICI Bank under the oversight & monitoring
of the Audit Committee of the Board of ICICI Home Finance Company. These support groups function independent
of the business groups and represent themselves at the various committees.
The Company’s balance sheet is exposed to liquidity and interest rate risks arising out of borrowing and lending
business. The Asset Liability Management Committee has overall responsibility of monitoring and managing the
structural liquidity and interest rate risk. The Asset Liability Management Committee on a periodic basis (at least
BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)
at March 31, 2013