Climate Change Risk Assessment
The Bank assesses impact from climate change or natural disasters. The consideration can be divided into two dimensions, which are operation and business risk of the Bank and risks that will affect customers’ business operation and their repayments as follows:
The Bank assesses business impact both in monetary and non-monetary in case there is a natural disaster and the Bank cannot operate its business as normal. The Bank also establishes business continuity management policy, which is approved by the committee and be revised annually. Moreover, the Bank establishes business continuity plan as well as usually revising and testing the plan in accordance with the specified period in order to be sure that the Bank is well prepared for natural disasters and able to operate its business within a reasonable time. In addition, the Bank is continuously monitoring natural disaster news so that the Bank is able to handle crisis situations immediately.
For the risk that will affect customers’ business operation and their repayments, the Bank always monitor the situation and assesses climate change risk. In case of natural disaster, the Bank will assess the impact of regional level, industrial level and individual level by notifying units that are looking after these groups of customers. The Bank has closely monitored the situation as well as staying alerted, reporting about the impact and inspecting the damage with the intention of providing customer assistance measures. Thus, the Bank has been adjusting the risk level of individual or industry or region along with monitoring the situation until it is disentangled.