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Step toward long-term vision of a bank is required progress in the quality of risk management at Bank of everyday activities, especially the process and the quality of risk measurement. The Bank received its revenues from customers to receive and manage risks to earn profits. Risk is the reason why the bank did business.

Governance structure of the Bank a strong risk management into the basic evaluation of the balance between risk and return to produce sustainable revenue, reduce earnings volatility and increase shareholder value.

Bank Risk Management Framework which includes the identification of depth to the Risk Management Objective and Risk Appetite, Risk Management Process ongoing continuous and sufficient availability of Risk Infrastructure and Environment that supports the creation of Risk. Let’s discuss one by one.

The first, the Risk Management Objective, purpose bank is in an efficient allocation of capital in order to obtain optimal benefits and reduce surprises surprises (surprises). The method used was to choose the bank earning assets and the activities of banks that can be measured effectively in terms of risk and risk adjusted return that corporate culture, the ability of capital, organization and infrastructure. It is important for the Bank to understand business issues and investment in which the Bank invests so that the Bank may collect data and information, and conduct sensitivity analysis of both the internal and external factors on earnings before deciding to invest.

Risk Appetite The second term depends on our ability to anticipate and measure the magnitude of risk. By using the boundaries (limits), the Bank can make sure all the risks have been well diversified portfolio spread and all well too, in accordance with our target market and meet the entire transaction process, policies and procedures.

The third to meet the Risk Management Process Bank directives of the Basel II Accord, Risk Management is managed based on the systematic stages as follows:
- Risk awareness
- Risk identification
- Risk monitoring
- Risk mitigation

Banks must have a library of risk, Risk Control Self Assessment (CRSA) and business self-assessment, methods of risk measurement methods, scenario analysis, early detection systems, contingency plans and adequate management reporting system. Risk awareness through intensive socialization, workshops and continuous training to develop risk culture for all employees.

Fourth, the Risk Management Infrastructure clearly illustrates the role of each organization to carry out the Risk Management functions, policies and procedures to communicate the important aspects of these processes, methodologies for estimating the potential losses, system analysis, and timely reports.

Fifth is the Risk Environment includes development of an appropriate culture that supports appropriate risk approach, appropriate communication about the benefits of risk management, training to ensure that organizations follow the latest techniques and the relationship between risk taking, performance appraisal and compensation to emphasize the responsibility on the individual level .