Risk management (RR) is one of the important components to help sustainable growth and development. During the operation process, SeABank Always focus on investing, upgrading, and applying QTRR into the operating process, creating a solid "shield" to help operations always be stable, safe and effective.
Activities at a SeABank transaction office
Comprehensive risk management according to international standards
In order to maximize support for business goals and build a solid foundation for sustainable development, SeABank continuously improves comprehensive risk assessment methods according to international standards and practices, while flexibly adjusting policies according to market fluctuations, ensuring the maintenance of asset quality, stable liquidity and solid buffers.
To strengthen the capital reserve foundation for risks, SeABank has completed all 3 pillars of Basel II ahead of schedule. SeABank is also one of the few pioneering banks to deploy and apply Basel III since May 2022 with strict requirements on meeting the Capital Adequacy Ratio (CAR), core capital components, reserve capital buffer components, and liquidity risk management indexes.
After 2 years of implementation, SeABank has continuously improved its indicators on ensuring safe capital reserves for operations and enhancing liquidity resilience against events. Accordingly, the Bank applies the IMA (Internal Models Approach) method to measure liquidity resilience index, calculate capital for market risk, and fully implement the Internal Capital Adequacy Assessment Process (ICAAP) to be ready for all scenarios. Thanks to that, the Bank always maintains a CAR ratio at a safe level higher than the minimum requirement of the State Bank of Vietnam (SBV), with a consolidated CAR ratio of 13,61% as of December 31, 2023.
SeABank also applied International Financial Reporting Standards (IFRS) early, in addition to Vietnamese Accounting Standards when preparing and presenting financial statements. Thereby, the Bank strengthened risk management and control through improving the ability to measure and manage business results, creating a basis for reasonable resource allocation to increase capital efficiency.
Manage environmental and social risks and promote responsible credit
In addition to managing inherent material risks, SeABank also proactively builds and deploys the Environmental and Social Risk Management System (ESMS) and promotes green credit, aiming to combat climate change and realize the goals of the Bank. Goverment on the transition to a net zero carbon economy.
Since 2022, SeABank has comprehensively implemented environmental and social risk management in credit activities. Accordingly, 100% of credit transactions are screened, classified, and assessed for environmental and social risks, thereby determining appropriate environmental and social risk management measures based on the identified risk level, while rejecting transactions with serious and irreversible impacts on the environment and society.
To improve efficiency and promote responsible credit projects, SeABank is constantly seeking companionship, financial and professional support from prestigious international partners, such as IFC, DFC, ADB... Thereby, the Bank is confident in providing green financial and social financial products to maximally support small and medium enterprises, women-led enterprises, developing towards green economy, circular economy, meeting strict production criteria of the world, improve the efficiency of resource and energy use.
Risk management based on technology and digitalization
To strengthen the risk management foundation to create momentum for business development, SeABank continuously promotes the implementation of the "Digital Convergence" strategy, focusing on investing in systems and applying advanced technology to strengthen control and prevent Prevent and detect risks early, thereby maintaining safe and continuous operations.
SeABank has invested in applying advanced technology to improve the efficiency of risk management, control and early detection, and risk prevention in many aspects, such as exploiting Big Data to have a comprehensive and timely view of problems arising in transactions and building tools to identify suspicious transactions; applying AI, Machine Learning, Data Analytics to build models to improve the quality of risk assessment; developing data centers...
In particular, SeABank especially prioritizes resources to prevent risks of technology safety and customer information security in the digital transformation period through investing in data loss prevention systems; risk management projects and enhancing card security such as Digital Authentication Framework or Mastercard Proactive Scanning; upgrading eKYC technology, ensuring integration of national population data and authenticating chip-embedded citizen identification cards to increase transaction security... Thanks to that, SeABank is certified to meet the highest standards of information security according to ISO 27001, and at the same time becomes the first organization in Vietnam to be awarded the PCI DSS 3.2 Certificate for safety and security for payment card systems.
For many consecutive years, SeABank has been rated by Moody's at B1 for its baseline credit rating (BCA). Notably, in 2023, this organization rated SeABank at Ba3 for many important categories with a Stable outlook. Moody's also highly appreciated the improvement in asset quality management, high capital adequacy, lending activities and stable liquidity.
Source: https://baodautu.vn/seabank-phat-trien-ben-vung-tren-nen-tang-quan-tri-rui-ro-vung-chac-d228677.html
