Corporate Governance

Risk
Management

Navigate risks with Three Lines Of Defence Model

Corporate Governance

The Board of Directors maintains a reliable system of risk management and internal control to safeguard the interest of PNB and unitholders. PNB adopts Three Lines of Defence Model with a formalised and effective governance structure in place. The structure promotes a uniformed view of risk across PNB by ensuring a consistent and effective implementation of risk management practices throughout the organisation with involvement of Board and Senior Management.

Fundamental of Risk Elements

PNB implements a structured and consistent approach to the monitoring and reporting on risk management at enterprise-wide-level guided by the PNB Enterprise Risk Management (ERM) Framework.

The independence of the risk management function and its close alignment to the business ensures consistent and effective risk oversight via the following fundamental risk elements:

Risk Reporting and Escalation Path

Structured and consistent approach to the monitoring and reporting of risks to enable risk oversight to understand, challenge and ultimately make decisions.

Risk Culture

Core element of an effective risk management structure in strengthening risk governance and embedding risk practices in day-to-day operations.

Risk Management Practices and Processes

Holistic risk management processes are in place to identify, analyse, monitor, and manage risk with appropriate mitigation strategies.

Resiliency and Readiness

Clear accountability and sound governance structure with transparent and lines of responsibilities.

Risk Appetite

Building organisational resilience and ability to respond in dealing with an ever-changing risk landscape.

Risk sensitive limits which cascade down to business level and type of risk that PNB is willing to accept in pursuit of its business objectives.

Risk Reporting and Escalation Path

Risk Culture

Risk Management Practices and Processes

Resiliency and Readiness

Risk Appetite

Risk Reporting and Escalation Path

Risk Culture

Risk Management Practices and Processes

Resiliency and Readiness

Risk Appetite