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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

Technology and Operational Risk Committee

Today DBS customers can conduct a wide range of banking transactions on street corners using ATM machines, or at home via the Internet or the telephone - no matter the time zone, country, currency or time of day. Clearly, technology is vital to all aspects of our operations. The required pace of change creates a continuous need to adapt our major systems and applications to provide customers and employees with real-time information and transaction execution capabilities.

There are capacity and cost constraints on our ability to deliver everything we wish on time and at an appropriate cost which makes IT an even more critical area for the Bank to manage well, keeping pace with change, and coordinating our response to it, throughout our organisation. The Technology Steering Committee is charged with the integration of all IT and telecommunications activities across the Bank, and the prioritisation of future expenditures to improve our platform's capabilities, providing an inter-business, cross-functional and international forum for linking IT development and overall direction for the IT users throughout DBS.

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

As new information technology comes on line, the Bank must also ensure that the risks inherent in technology are well managed. The Operational Risk Committee (ORC) provides an executive-level forum for discussion and decisions on all aspects of operational risk and its management. The Committee also addresses critical back-up and contingency planning issues and provides a focal point for responding to unforeseen circumstances that could delay or interrupt service.

Sound business processes, internal controls, an independent audit group and cross-functional committees are all integral elements in managing operational risk. Our control environment is built on the integrity, competence and supervision of our professionals, as well as management's control philosophy and operating style. Primary responsibility for managing operational risk rests with business managers, who are responsible for establishing and maintaining internal control procedures that are appropriate for their operating environments. A comprehensive system of internal controls, comprising business managers, the ORC and the Audit Committee, are designed to ensure compliance with internal policies and regulatory procedures.