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DBS Bank Annual Report 1998

Performance at a Glance

Financial Highlights

Letter to Shareholders

Corporate Governance

Operations Review

Financial Report



Corporate Governance

Risk Management Committees

Each new banking instrument, market cycle and move to consolidate business around the world changes our view of risk and our approach to managing it - one of the basic building blocks of finance. We consider having world-class skills in monitoring, interpreting and forecasting our risk profile a critical internal capability. To that end, the Risk Management Committees cluster is a vital focal point for our newly-centralised Risk Management Group and senior management. The Committees are a mechanism for taking a panoramic view - across products, geography and counterparties on and off the balance sheet - of the risks in DBS' day-to-day business activities.

Our approach to risk management has several components; comprehensive risk management processes, early identification systems, accurate risk measures, investments in people and technology to interpret and manage risk on a daily basis, stress tests and comprehensive process reviews in conjunction with internal auditors, independent accountants and regulatory officials.

Organisation Structure
Y2K DBS Initiative
Best Practices Guide
Managing Specific Risks

Major Risks Associates with DBS Business

Committee Structure Diagram
Policy Committee
Products and Services Committee
Human Resources Committees
Risk Management Committees
Technology and Operational Risk Committee


Although business units have primary responsibility for managing specific risk exposures, the Risk Management Group is the central resource for quantifying and managing the portfolio of risks taken by the Group as a whole. It performs the following roles: 

  • Implements, maintains, improves and communicates a common risk management framework; 
  • Recommends market risk limits and concentration limits for credit risk by client type, product, industry and country; 
  • Performs independent reviews of significant risk concentrations and has the authority to challenge such positions; 
  • Oversees allocation of balance sheet capacity;
  • Helps identify opportunities to optimise risk-based return on capital.

The Risk Management Committee, which is supported by the Risk Management Group, provides: 

  • Oversight and management of all risks; The central point of risk management policy formulation and review; 
  • Oversight, direction and counsel to other risk committees and risk management processes;
  • Information and perspective for the management of DBS' overall risk profile; material changes in our products and the markets in which we participate; business environments; and required changes in risk management processes. 

Sub-committees of the Risk Management Committee provide executive forums for discussion and decisions on specific areas: 

  • Credit Committee
    Credit risk and its management 
  • Asset-Liability Committee
    Structural interest rate risk, foreign exchange risk, liquidity risk and their management 
  • Capital and Commitments Committee
    Adequacy, use and allocation of capital across DBS