al khaliji
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corporate governance
Our people and our customers expect the very best. We are building our bank therefore on the very best of foundations and our corporate governance is much more than a mere statement of compliance.
Al Khalilji Commercial Bank “al khaliji” is the group’s main operating company. Governance of the group is exercised through the following board and committee structure.
We believe that a good corporate governance framework promotes transparent and efficient systems and processes, consistent with the rule of law, and clearly set out responsibilities, while recognising the rights of stakeholders. We are therefore putting in place a corporate governance structure in accordance with international best practice founded on OECD principles and Basel II banking regulations. In addition to the full Board of Directors, al khaliji has established four Board committees: audit and risk committee, governing committee, remuneration committee and nominations committee.
These committees have terms of reference which have been approved by the Board of al khaliji. Each of the committees is attended by the relevant Board members who have the requisite skills, experience and technical knowledge to perform their roles.
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auditors
The audit and risk committee assists the Board to execute its statutory and fiduciary responsibilities for the oversight of al khaliji’s internal audit, external audit, risk management and compliance activities. Both the head of internal audit and the head of risk management report to this committee. The committee is chaired by an independent director.
The committee’s principal charter calls for it to:
- Review the integrity of al kahliji’s financial reporting
- Ensure the independence and effectiveness of al kahliji’s internal audit functions
- Review the adequacy and effectiveness of al khaliji’s controls in respect of financial accounting and reporting
- Oversee the selection and compensation of al khaliji’s external auditor for appointment and approval at each AGM and ensure the external auditor’s independence
- Review the adequacy and effectiveness of al khalijji’s risk management policies and methodologies and oversee al khaliji’s compliance with Based II applicable laws and regulations.
The independent audit function regularly evaluates operational procedures and advises senior management and the Board of any potential problems.
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risk management
We acknowledge that certain risk factors (credit, market, operational and liquidity risks) could affect our future results. We manage these risks by a team of global professionals with over 100 years experience between them using Basel II compliant and international standard policies and instructions and world class al khaliji technology.
- credit risk
- We manage our credit risk exposure by diversifying our lending activities, avoiding concentrating risk within individuals, groups, or customers in specific locations or businesses.
- market risk
- We measure and manage the market risks of interest rates, equity prices, currency and commodity prices by establishing limits on our level of exposure to these risks.
- operational risk
- We have put in place a comprehensive set of policies and instructions to control and manage operational risks throughout all aspects of our operations.
- liquidity risk
- Our risk control procedures take into account all current and anticipated future risks with regard to liquidity as not being able to meet funding requirements is an issue of global concern. So far there has been little exposure to the US led credit crunch within the Gulf regions however our risk control procedures have been raised as a precaution.
