168
Global Compact International Yearbook 2013
AAIB corporate governance goes beyond
having effective controls in place. It is
about the voluntary adoption of govern-
ance practices, individual behavior, and
corporate culture.
•
Corporate governance is a living and
dynamic framework: At AAIB the role
of internal control functions goes be-
yond monitoring and control to guid-
ance and consulting on risk aware-
ness.
•
Linking risk-management practices to
organizational performance: ensuring
that consistent risk-management and
compliance practices are in place with-
out losing focus of long-term growth
and profitability.
•
Being an early adopter of what the Bank
considers to be best practice interna-
tionally: where appropriate, by apply-
ing before a legislation or regulatory
directive is published.
•
Empowering staff members to come
forward and report any serious issues:
AAIB’s whistle-blowing policy is man-
aged by the Compliance “Department,”
whereby findings – if any – are repor-
ted to the Board’s Audit committee.
AAIB has in place an effective control
framework that properly monitors com-
pliance and the transparent reporting
of financial results, as well as assesses
potential risks and proposes the appro-
priate management thereof. The ap-
plied control framework consists of the
following:
Board of Directors and Board
Committees
The Board is assisted by its Audit, Risk,
Corporate Governance, and Remu-
neration committees in performing its
oversight role on bank operations and
management.
Senior Management
Within the powers delegated to them,
senior management is responsible for en-
suring the implementation of an effective
control framework and for setting the
tone for the AAIB’s risk culture, which
reflects the Bank’s attitude toward risk-
taking and risk management, as well as
integrates risk awareness into the Bank’s
daily operations.
Internal Committees
In addition to the primary role assumed
by the Bank’s control functions, risk
and control issues are also discussed by
the Bank’s internal committees, such
as the ALCO & Market Risk Manage-
ment, Operational Risk Management,
Retail Credit Risk, Risk and Control, to
name a few. Internal committees are
responsible, among other things, for
ensuring that AAIB has appropriate
and current risk policies in place that
address themajor risks faced by the Bank.
The committees’ recommendations are
presented to senior management and
Board-level committees for review and
appropriateness.
Consolidated Risk Management
Function
AAIB has a consolidated independent
risk-management function with access
to the Board through its Risk Commit-
tee. The Consolidated Risk Management
Group is mainly concerned with the
identification, assessment, monitoring
and control, and reporting of the main
Corporate Governance:
The Way to Sustainable
Finance
Arab African International Bank
Arab African International Bank (AAIB) firmly believes that the road to impactful corporate
governance entails values that achieve sustainable businesses as an end goal – AAIB seeks
to maintain the balance between economic growth, profitability, and environmental, social,
and governance (ESG) concerns.
By Perihan Abdelghaly and Maha Hasebou, Arab African International Bank