GovernanceIthmar Capital Partners Limited is required by the rules of the Dubai Financial Services Authority (the “DFSA”) to establish and maintain risk management systems and controls to enable it to identify, assess, mitigate, control and monitor its risks. This is not only a regulatory requirement, but it is also a sound business practice. The Board of Directors is required to be aware of the risks that the Firm is exposed to, make certain that they are appropriately managed by the business, and that ensure that appropriate oversight is provided. The Firm has implemented an Internal Risk Assessment Process which outlines the approach to identify, assess, and manage risks. The Firm also maintains a Risk Matrix which stipulates the risks it is exposed to and describes the mitigating factors to manage these risks within the context of its risk appetite.
Roles and Responsibilities
The ultimate responsibility for the risk management and regulatory compliance oversight of the Firm rests with the Board of Directors. Senior management is responsible for the day to day management and for periodically reviewing the Risk Management Policy and for identifying, managing, monitoring and mitigating the risks to which the Firm is or might be exposed to. The Board is required to approve the Risk Management Policy and any amendments to it. The Board must ensure that risk exposure is controlled and reviewed at regular intervals and that controls are modified without delay if seen to be ineffective.
The Board is assisted by the Audit, Risk, Compliance & Operations Committee which supports the Board in fulfilling its responsibility for reviewing the Firm’s financial and prudential statements, identifying, measuring, and monitoring the Firm’s risk profile and oversee compliance with all regulatory and internal policy requirements. The Committee consists of representatives of the Firm’s Board of Directors, Chief Executive Officer, Chief Operating Officer, Finance Officer and Compliance Officer and meets quarterly.
Commensurate with the nature, size and degree of risk associated with the Firm, a separate risk management function has been established. The Firm’s risk management systems and controls and continuous monitoring of the on-going risk to which the company is exposed is overseen by the CEO and managed on a day to day basis by the COO who also acts as the Firm’s Risk Manager. The COO, with the assistance of the Finance Officer and the Compliance Officer, is responsible for maintaining and updating the Risk Management Policy and will undertake an annual review, or more frequently if required, of the Firm’s risks and will report to the Board of Directors on any significant matter relating to risks arising within the Firm. A review of the Risk Management Policy as well as the Internal Risk Assessment Process will also form part of the Firm’s Compliance Monitoring Programme.
Sound corporate governance practices are integral to the company’s business activities and help to underpin the company’s long-term performance. They provide a framework of systems, policies, procedures and controls through which the company:
- promotes the sound and prudent management of its business;
- protects the interests of its customers and stakeholders; and
- places clear responsibility for achieving the above on the Governing Body and its members and the senior management of the company.
This Corporate Governance framework is detailed in the Firm’s Corporate Governance Manual which has been designed to ensure compliance with regulatory requirements, ensuring adherence to international best practice and the OECD Principles of Corporate Governance. The Board of Directors is responsible for reviewing and approving the Firm’s Corporate Governance Framework, at least annually, to ensure it remains appropriate and effective, taking into account any changes to the nasture, size, and complexity of the Firm’s business. Any changes to the manual should be recorded in the Register of Amendments. The Firm has two Board Committees, namely the Audit, Risk and Compliance & Operations (ARCO) Committee and the Remuneration Committee.