Following on from the internal risk management review requested by the Governor of the Central Bank , John Hurley, last year, in the wake of losses at AIB’s then US subsidiary, AllFirst, the Central Bank has revealed the results of the exercise in its Summer Bulletin 2003.
While no significant concerns were found, the review identified five key areas where controls could be strengthened. These are:
• The establishment of appropriate sub-committees of the board with adequate terms of reference
• Updating the terms of reference of existing sub-committees to reflect business development, particularly the Audit Committee
• Developing internal audit planning to improve the coverage of all business areas greater segregation of duties, particularly in the smaller institutions
• Continuously developing controls in relation to treasury and trading activities
The review follows on from the Governor’s letter of March 2002, when he sent a letter to banks in which he reminded them ‘of their obligation to ensure that risks are controlled and managed to best international standards’. |
