ICICI Bank 2013 Annual Report Download - page 208

F130
The finance team works under the broad framework of Asset Liability Management Policy to ensure maintenance
of adequate level of economic capital at all times.
Further, the following committees also contribute to the operational efficiency and risk management of the
company:
 • AuditCommittee;
 • Product&ProcessesApprovalCommittee;
 • ComplianceCommittee;
 • InvestmentCommittee;
 • CommitmentCommittee;and
 • InformationTechnology(IT)Risk&CustomerServiceCommittee.
In addition to the above, various other policies including Prevention of Money Laundering Policy, Oversight Policy,
Whistle Blower Policy, Fraud Risk Management Policy and Prevention of Insider Trading Policy (Code of Conduct)
help in mitigating various risks faced by the Company. Further, activities such as internal audit of various business
units and corporate services, risk based compliance monitoring, risk and controls self assessment, operational risk
reviews and SEBI mandated internal audit of broking operations ensure the independent evaluation, monitoring and
reporting of the risks.
18. RISK MANAGEMENT FRAMEWORK OF ICICI VENTURE FUNDS MANAGEMENT COMPANY LIMITED
The policies approved by the Board of Directors form the governing framework for overall risk management. The
key policies in this regard are Anti-money laundering policy, Insider Trading Policy, Chinese Wall Policy, Conflict
Resolution Policy, Arm’s Length Policy, Anti-Bribery & Anti-Corruption Policy. Business activities are undertaken
within this framework. Independent groups such as Compliance and Operational Risk have been constituted to
facilitate independent evaluation, monitoring and reporting of various risks. These groups function independent
of the business groups and represent themselves at the Audit Committee of the Board of the company and also
interface with the corresponding groups at ICICI Bank for a Group level oversight.
The Operational Risk Management function was created during fiscal 2011 to establish an operational risk
management framework in the company. The framework includes the Operational Risk Management Policy, Board-
approved process manuals and Operational Risk Management Committee. A Risk Register has also been created
and maintained as a part of the Risk and Control Self Assessment exercise involving all the departments in the
company. The Register contains an inventory of risks that the company is exposed to along with existing controls.
The Operational Risk Management Committee overviews the functioning of operational risk management within
the company.
19. RISK MANAGEMENT FRAMEWORK OF ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY LIMITED
ICICI Prudential AMC has in place a Risk Management Policy detailing the philosophy and procedure adopted
to identify, measure, monitor and treat/mitigate risk at the enterprise level. As per the policy, the management
reviews the risk levels and action plans at a Risk Management Committee meeting, which is convened on a
quarterly basis.
The Risk Management Committee addresses a wide range of issues such as operational risk, investment risk,
reputation risk and strategic risk. Also a key risk report summarising the key risks faced by the enterprise is
placed before the Audit & Risk Committee (which is a board-level committee) and Risk Management Committee
periodically.
The risk management team carries out operational risk assessment across all business processes/lines and
appraises the Risk Committee on the key operational risk areas and suggested action plans if any to mitigate
the risks.
BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)
at March 31, 2013