Sketch an organogram of ‘Enterprise Risk Management (ERM)’ for the banking sector in Bangladesh.

Have a look at the organogram of ‘Enterprise Risk Management (ERM)‘ for the banking sector in Bangladesh:

 

 

 

The Board of Directors

The Board of Directors is the highest authority in the risk management process of an organization. It gives utmost priority to sound risk management practices. The Board takes every possible initiative to keep various risks within tolerable limits.

Board Risk Management Committee (BRMC)

The BRMC assists the Board in performing and overseeing risk management activities.

Board Audit Committee

The Board Audit Committee supervises the internal control system, internal audit activities, reporting accuracy, and compliance with rules and regulations.

Chief Risk Officer (CRO)

The Chief Risk Officer is the head of risk management. The roles of the CRO are: Identifying and assessing risks, developing risk management strategies, and overseeing the Risk Management Division.

Managing Director/CEO (MD/CEO)

The Managing Director/CEO implements the policies approved by the Board of Directors. He/She ensures that all concerned departments and units properly follow risk management policies.

Risk Management Division (RMD)

The RMD manages different categories of risks such as credit risk, market risk, and operational risk.

First Line – Business Units

Business units and branches are responsible for identifying and managing risks in daily operations. Examples: Loan processing, Cash operations, Customer service

Second Line – Risk and Compliance

Risk management and compliance teams monitor and guide the first line.

Third Line – Internal Audit

Internal Audit independently reviews daily activities and identifies potential risks. It also provides feedback to the Board.

Bangladesh Bank (BB)

Bangladesh Bank is the regulatory authority that supervises banks and NBFIs, Formulates and implements guidelines, and ensures financial stability.