Informe_Anual_Cecabank_2016_ENG

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Assets and Liabilities Committee
The purpose of the Assets and Liabilities Committee (ALC) is to approve, in-
form, manage, monitor and control the institution’s financial risks. It operates
with regard to risks within the Risk Tolerance Framework and the General
Framework of Credit Risk Management, agreed upon by the Board, at the
suggestion of the Risk Committee.
In 2016, the ALC met on fourteen occasions (eleven ordinary meetings and
three extraordinary meetings).
The Financial Risks Committee
Has as its objectives: ensuring that the company’s exposure to risk is wi-
thin the tolerance limits established by the Board and the ALC; permanent-
ly adapting risk management procedures to the increasing sophistication of
the financial market and aligning them with capital requirements at each
moment in time; and permanently adapting the valuation methodologies to
best market practice and the needs of the institution.
The Financial Risk Committee met on eleven occasions in 2016.
Financial Department Investments Committee
The Financial Department Investments Committee addresses the depart-
ment’s ordinary management, paying special attention to the activity of the
Finance Department, in accordance with the policies approved by the Board
of Directors and the guidelines given by the ALC, reporting back to it with the
information necessary for decision-making.
In 2016 the Investment Committee met on eleven occasions.
The New Financial Product Committee
The New Financial Product Committee’s mission is to ensure that the bank has
full knowledge of the risks incurred in operations in the markets and with finan-
cial products. Has the necessary infrastructure for their management, control
and administration. It furthers the standardisation of the financial products the
company works with, from the perspective of systems and procedures.
New Financial Product Committee met three times in 2016.
The committees
supporting the ALC
are: the Financial
Risk Committee, the
Investment Committee,
the New Financial
Products Committee,
and the Liquidity
Contingency Committee
In addition to the Board and its delegated Commissions, the following com-
mittees in which Senior Management are involved also play a key role in risk
governance, policy design and monitoring.
Cecabank 2016 Annual Report Page. 90
06 FINANCIAL INFORMATION
6.1
6.