Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 2

Further analysis of the CRMR revealed that it acts as a dashboard of a bank. It is also considered as a blueprint that integrates with the RAS of a bank. Bank- wide risks are incorporated into this report for a holistic view to manage. This template is prescribed with nine distinct segments to narrate the risks and risk management information namely, investment risk, market risk, liquidity risk, operational risk, reputational risk, core risk, compliance risk, capital management, and money laundering risk. After the identification of risks in every segment, banks are also instructed to state their mitigating tools and techniques to address those risks. Therefore, the CRMR integrates bank-wide risks into a report as a dashboard for holistic and integrated management of risks. In addition to the CRMR, banks are also instructed to prepare a MRMR putting the focus on the CRMR relatively in a short version except for the months of June and December. Banks are also advised to submit this monthly report to the BB by the end of the successive month. Further analysis of this template denoted that the MRMR includes an assessment of capital adequacy, assessment on operational risk, large loan investment with funded and non-funded categories including their limit and outstanding balance, top 30 depositors, investment performance branch wise, and comparison with the budget, sectoral and divisional performance of the investment, liquid asset, recovery, profitability, loan classification, investment growth, top 20 defaulters, deposit mix with growth, top 10 depositors and many more as a major disclosure. Like CRMR, banks must mention their action plan to address the risks after the identification. In parallel to the risk reports, it is also marked that banks are advised to hold BRMC meeting at least four times annually, preferably one meeting in every quarter and instructed to submit the meeting minutes to the BB within seven days following the meeting. Besides, banks are also instructed to hold ERMC meeting at least monthly and ask to submit the meeting minutes to the BB within the following month of the meeting. Moreover, the CRO is instructed to chair the ERMC meeting and report the material risks directly to the BRMC with a copy to the MD/CEO for information. It is further noted that banks are instructed to prepare a tailor-made “Comprehensive Risk management Guideline” based on the BB’s revised risk management guideline issued on 8 October 2018 depending on the business nature, size, and complexities, subject to an annual review to cope with the changing environment. Besides, this guideline is also asked to submit to the BB after taking approval from the board. Also, banks must submit a “Review Report” on own risk management policies and effectiveness of the risk management functions after approval of the board by the end of the second month Banks are also instructed to submit […] A review report of Risk Management Policies and effectiveness of risk management functions with the approval of the board of directors by the end of 2nd month following the end of each year. (Bangladesh Bank 2018, p. 37). It is also evidenced that banks are asked to submit the soft copy of the “Stress Testing” report on a half-yearly basis to the BB within the successive month of the half-year. The framework of the stress testing report is designed by the BB considering Pillar 2 of the Basel-III framework, which mainly includes sensitivity tests and scenario analysis and advised the banks to carry out the stress testing as per the given framework at regular intervals. Besides, it is marked that the BB has revised the core-risk management guidelines in six core risk areas namely, credit risk, asset-liability management risk, internal control and compliance risk, foreign exchange risk, money laundering risk, and information and communication technology security risk during the years 2016 and 2017 and made it mandatory for banks to follow. After this revision, banks are also instructed to evaluate the effectiveness of the core risk management and advised to conduct internal risk rating of the core risks both individual and composite way on a half-yearly basis. The core risk rating is also directed to disclose in the CRMR. It is guided as: Meanwhile, core risk management guidelines and other risk related guidelines have been revised. […] BBB’s shall comply with latest core risk guidelines and risk management guideline circulated by BB for effective risk management (Bangladesh Bank 2018, p. 20). Further, it is found that banks are instructed to submit the “Capital to Risk-weighted Asset Ratio (CRAR) Report” on a quarterly basis to the BB through a prescribed format on a consolidated basis and a solo basis by the end of the month following the quarter based on Pillar 1 of the Basel III framework. Besides, it is asked to submit the “Internal Capital Adequacy Assessment Process (ICAAP) Report” annually after approval of the board by 31 May based on the latest audited financial report. In preparation of the ICAAP report, an SRP (Supervisory Review Process) Team is instructed to form in the banks headed by the MD/CEO comprising heads of all functional departments. The main aim of the SRP Team is to reveal whether a bank has a prudent risk management system in place and have sufficient capital to cover its own risk profile. However, there is a provision of a joint meeting between the BB’s “SREP (Supervisory Review Evaluation Enterprise Risk Management in Designing Meta-Regulation under Risk-based Regulatory Strategy: An Empirical Evidence from Financial Regulation Process) Team” and the bank’s “SRP Team” to evaluate the ICAAP Report. In its guideline, BB instructed: 43 Global Journal of Management and Business Research Volume XXIII Issue II Version I Year 2023 ( ) A © 2023 Global Journals following the financial year. In the guideline, it is instructed as: