Risk Management

Framework

Banque BEMO recognizes that effective Risk Management is fundamental to conducting sound banking activities. 
Accordingly, the Bank has established a framework for managing Risk at an enterprise-wide level and on an on-going basis in strict compliance with applicable regulations, in line with international standards and best-practices and in accordance with the directives set by the Bank for International Settlements through the Basel Committee for Banking Supervision and the related Basel Accords’ guidelines.

Banque BEMO’s Risk Management Framework is prepared by the Bank’s independent Risk Management Function and is ratified by the Board of Directors. It is developed in a way to ensure that all types of Risks borne by the Bank are identified, properly understood, accurately measured, and actively managed and monitored.

Risk Management activities are conducted using various methods, tools and techniques and are reported on a regular basis to the Bank’s Board Risk & Compliance Committee for a proper revision and appraisal, ensuring thus that Risks remain within acceptable limits and Risk Management activities are in line with the Risk Management policy and procedures as approved by the Board of Directors.

Banque BEMO is committed to continuously raise risk awareness throughout the Bank and further enhance its Risk Management Framework through regular reviews and updates based on the latest developed Risk Management models.

Capital Adequacy

Banque BEMO undertakes to ensure the maintenance of Capital in accordance with the revised minimum capital requirements under the Basel III guidelines as set forth by the Central Bank of Lebanon in December 2011.
The approaches adopted by Banque BEMO for measuring Capital Adequacy under Pillar 1 of the Basel Accords are the following:

The Standardized Approach for Credit Risk
The Standardized Approach for Market Risk
The Basic Indicator Approach for Operational Risk

 

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