Governance and Responsibilities
Governance and Responsibilities
Board of Directors:
The Board of Directors will oversee the risk management system, approve the risk strategy, and ensure adherence to policies.
Provides oversight and ensures that risk management is effectively implemented.
Ensure that senior management takes necessary steps to identify, measure, monitor, and control risks.
Receive regular reports on risk exposures and management actions.
Risk Management Process
Risk Management Process
Risk Identification: All departments are responsible for identifying potential risks relevant to their operations.
Risk Assessment: Identified risks are assessed in terms of their likelihood and potential impact.
Risk Control: Controls and procedures are put in place to mitigate identified risks.
Risk Monitoring: Risks and controls are monitored regularly to ensure that mitigation measures remain effective.
Risk Reporting: Regular risk reports are submitted to senior management and the Risk Management Committee.
Risk Management Framework
Risk Management Framework
The risk management framework of the Company includes the following components:
Risk Identification: Recognize and understand all material risks, including those arising from new business initiatives. This includes identifying inherent risks in each activity or business line and relevant activities for each type of risk and ongoing identification of all significant risks including credit, market, liquidity, operational, legal, and reputational risks across all business lines.
Risk Assessment:Use qualitative and quantitative methods to assess the likelihood and impact of risks. Prioritize risks based on their potential impact on the company.
Risk Measurement: Use appropriate techniques to measure risks accurately and timely, determining their potential impact on the company’s financial position. Regular testing of risk measurement tools is essential.
Risk Monitoring: Establish management information systems to monitor risk positions and exceptions, ensuring timely review and action. Monitoring reports should be frequent, accurate, and informative. Establish key risk indicators (KRIs) and regularly review them to monitor risk levels. Conduct periodic risk assessments and audits.
Risk Control: Implement appropriate controls over risk, including limits and tools for mitigating risk. Maintain policies and procedures that define responsibilities and authorities for risk management.
Risk Appetite: The Board will annually review and approve the risk appetite framework, aligned with strategic goals.
Risk Reporting:Prepare regular risk management reports for the Board of Directors, including updates on key risks, mitigation efforts, and emerging risks.
Stress Testing: Regular stress tests should be performed to ensure the company’s resilience to severe but plausible economic scenarios.
Risk Management (Overview)
Risk Management (Overview)
Century Finance recognizes that effective risk management is fundamental to achieving sustainable growth and maintaining financial stability as a Non-Bank Financial Institution (NBFI) in Myanmar. The Company adopts a comprehensive Enterprise Risk Management (ERM) framework to identify, assess, monitor, and manage risks arising from its business operations and financial activities.
The Board of Directors and Senior Management are committed to fostering a strong risk-aware culture and ensuring that adequate resources, systems, and skilled personnel are in place to support effective risk management practices. Century Finance continuously enhances its risk management framework in line with regulatory requirements, business strategies, and market developments.
The Company takes an integrated and proactive approach to managing all material risks, including credit risk, operational risk, liquidity risk, market risk, compliance risk, technology and cybersecurity risk, reputational risk, and environmental and social risks. Through regular monitoring, internal controls, and risk mitigation measures. Century Finance seeks to maintain sound asset quality, operational resilience, and customer trust.