The primary purpose of risk management is to ensure the Bank’s long-term financial sustainability and operational resilience while enabling the CEB to fulfil its social mandate. The Bank implements international best banking practices by promoting a sound and prudent risk culture across the organisation. The CEB has a triple-A rating by the world’s leading credit rating agencies.
In this section
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Risk management
The primary purpose of risk management is to ensure the Bank’s long-term financial sustainability and operational resilience while enabling the CEB to fulfil its social mandate.
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Credit risk
Credit risk is defined as the potential loss arising from a bank borrower or counterparty failing to meet its obligations in accordance with the agreed terms.
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Market risk
Market risk is the risk of incurring losses due to adverse movements in financial markets.
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Liquidity risk
Liquidity risk is the risk of loss resulting from the inability to meet payment obligations in full and on time when they become due.
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Operational risk
Operational risk is the potential loss resulting from inadequate or failed internal processes, people and systems or from external events, and includes legal risk. It also takes into account reputational risks linked to the Bank’s operations.