Risks Information

Integrated Risk Management Unit (IRMU)

The Comprehensive Risk Management process in the Bank includes the establishment of guidelines, policies and procedures for the identification, measurement, surveillance, limitation, control and disclosure of the different types of risk faced by the Institution in its operation..

The risks to which the Institution is exposed are Market Risk, Credit Risk, Liquidity Risk, Interest Rate Risk and Operational Risk, which groups Technological and Legal Risk..

They are managed through Aither Core Banking System and auxiliary Core Banking systems such as VALMER and Bajaware; within which these risks can be monitored through a series of reports that can be generated with the periodicity required by each type of risk. 

The figures responsible for the Integral Risk Management and its general activities are:

• The Board of Directors, responsible for approving objectives, guidelines and policies for comprehensive risk management, global limits and mechanisms for corrective actions.
• The General Manager, responsible for ensuring that the necessary independence is maintained between the Risk Management Unit and the business units.
• The Risk Committee, responsible for managing the risks to which the Institution is exposed and for monitoring that its operation adheres to the objectives, policies and procedures.
• The Unit for Integral Risk Management (IRMU) aims to identify, measure, monitor and report on the quantifiable risks faced by the Institution.
• The Internal Audit has among its functions to perform an audit of Integral Risk Management at the end of each year.

The purpose of the Integral Risk Management is to ensure the operation and the creation of value in the Institution maintaining a conservative relationship between risk and performance.

The risks to which the Institution is exposed are Credit Risk, Liquidity Risk, Market Risk and Operational Risk, which groups Technological and Legal Risk. They are managed through Core Banking System and auxiliary systems of Core Banking; within which these risks can be monitored through a series of reports that can be generated with the periodicity required by each type of risk.

Objective and scope of Comprehensive Risk Management(CRM)

The Unit for Integral Risk Management at Banco Shinhan de México must meet the following objectives:

• · Support the General Management to implement the Integral Risk Management system.
• · Support the General Management to manage the operation considering the new and changing risk environments, as well as the existing risk environment.
• · Promote the development and application of a CRM culture in the Bank through the design, development and application of policies, guidelines and methodologies in this area, consistent with the prudential criteria established by the authorities and in accordance with best practices at the national and international levels..
• · Seek a balance between risk and return consistent with the objectives and strategies of Banco Shinhan de México.
• · Generate risk models that allow Banco Shinhan de México to preventively risk possible risks that impact liquidity and capital.

The scope of Comprehensive Risk Management is:

Effectively disseminate the CRM culture at all levels of Banco Shinhan de México, allowing each of the members of the institution to have a clearer vision of the risks assumed and the tools to be able to manage them properly.

Integrated Risk Management Framework

Context Diagram

The following diagram allows to identify, in a generic way, the participants in the processes related to the IRMU, classifying them into different groups depending on their participation.