Fundamentals of Risk Management

ABIL: Risk management overview
The ABIL risk management strategy is to embed a risk culture and support business units within the 
group. The key focus is to ensure that business units operate within risk parameters that will lead to 
sustainable business and enhanced risk management practices. The structure is supported by three 
pillars: competence, collaboration and independence.
In the 2013 financial year, the customer value proposition was enhanced by offering new products 
such as short-term insurance (funeral) and investments that introduced additional operational and 
compliance risk. These products are aimed at providing a diversified income stream, lowering the 
cost of funding and attracting a more diversified customer base. The group risk function has been 
broadened with regard to systems and people in order to focus on key areas, such as non-compliance 
with regulatory requirements. This function has been particularly critical in fraud mitigation this year, 
to assist with early detection and timely resolution.
The group risk management approach is an approved enterprise-wide risk management 
methodology and philosophy to ensure adequate and effective risk management. In addition, the 
methodology also provides regulatory principles and a risk management approach that ensures the 
following core principles are adhered to:

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Introduction to risk management
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clear assignment of responsibilities and accountabilities;
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common enterprise-wide risk management framework and process;
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identification of uncertain future events that may influence achievement of business plans and 
strategic objectives; and
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integration of risk management activities within the company and across its value chains.
ABIL’s risk management objective is to ensure a proactive identification, understanding and 
assessment of risks, including activities undertaken that result in risks which could impact on 
business objectives. This is executed through various risk management and governance mechanisms 
and risk management oversight bodies.
Edited extract from African Bank Investments Limited
Risk report for the financial year ended 30 September 2013