CIB-Egypt received two Asian Banker awards of the Achievement in Operational Risk and Liquidity Risk Management for 2016 in the Middle East and Africa during a ceremony held in Dubai. CIB-Egypt is well positioned and maintains a forward-looking Risk strategy to sustain any external shocks based on sound balance sheet management, solid capitalization level, and exceptional Liquidity. Despite continuous unstable market conditions post 2011 in Egypt, the Bank continues to maintain its solid reputation as a market leader, serving clients efficiently and delivering strong results.
CIB has an effective and disciplined Enterprise Risk Management (ERM) framework as it supplements the Bank to proactively recognize potential adverse events and establish appropriate Risk responses that in turn reduce costs or losses associated with an unexpected and volatile market environment. CIB’s ERM framework is holistic with a forward-looking approach, has a dynamic Risk culture, a robust & adaptable technology platform, aligned to the Business & Risk Strategy, coupled with a strong framework to monitor both Financial and Non-Financial Risks. The Bank’s Risk Management role is strategic, with strong partnerships with key stakeholders throughout the organization.
Operational Risk is embedded in all of CIB’s activities, products, processes and systems, which positively affects the financial environment of the organization. The work that the Bank has conducted in Operational Risk modeling is a game changer in Middle East & Africa. In addition, CIB’s focus on emerging Non-Financial Risks such as Conduct, Vendor, Reputational, Cyber, Information Security and IT Risks has helped establish a strong comprehensive Operational Risk framework. Furthermore, Operational Risk plays a critical advisory role for effective Risk response, thus enhancing value across the organization.
Via its Liabilities driven strategy, CIB managed to maintain strong Liquidity ratios over the years, in line with local and international guidelines. The Bank has a robust Contingency Funding Plan that supports perse funding sources and high-quality liquid assets (HQLA), maintaining an adequate Liquidity buffer with minimal reliance on wholesale funding.
The year of 2016 witnessed an exceptional percentage of customer deposits to total funding base. The Bank took the initiative to introduce new products, which helped persify the deposit base and continue to support a strong Liquidity position. Proactive new initiatives, such as Liquidity adjusted Value-at-Risk (VaR) and Internal Liquidity Adequacy Assessment Process (ILAAP) have continued to enhance the Liquidity framework using international best practices.