The Bank gives emphasis to the systematic and effective risk management and control. The Bank has clearly established a framework for risk management structure, policies, as well as guidelines for risk management, covering aspects of risk management according to the requirements of the Bank of Thailand (BOT), adopting the framework of Committee of Sponsoring Organizations of the Treadway Commission (COSO), which is a framework for Enterprise Risk Management (ERM). The framework has been regarded as the structure of integrated risk management according to international standards. Read more detail.

Emerging Risk Management Approaches

       Regarding the COVID-19 outbreak situation in 2020, the world remains vigilant to reduce the spread of COVID-19 to a controlled level. It has taken actions such as a lockdown, the closure of international borders, social distancing, etc., resulting in a reduction of economic activity and severe economic recession around the world. Thus, there is a challenge, credit risk and strategic risk for banking business. The Bank therefore has a credit risk management plan and a strategic risk management plan aimed at digital banking that is linked to government programs and measures. The Bank’s approaches are as follows:

1. The Bank implemented measures and programs to provide assistance to all customer groups in accordance with government policies such as the suspension of principal and interest payments, interest rate reduction, extension of the repayment period, debt restructuring, etc. The Bank has categorized the affected customers according to their risk level in order that the Bank can monitor and assist appropriately according to the customer's risk level. In addition, the Bank has adjusted its internal processes to provide assistance to customers more conveniently and quickly.
2. The Bank has developed a consistent HR strategic plan to restructure the organization as well as developing employees' potential with explicit re-function and re-skill plans for employees to support the direction of the Bank's business in the future.
3. The Bank has established a Channel Rationalization Plan to improve the Bank's service channels to be more efficient, such as branch redesign, which is a change in the branch model to suit the customer behavior in the area, increasing the number of digital advisors for advising customers on using more digital channels, including Machine Optimization plan for managing ATMs and ADMs, etc.
4. The Bank improved the "Pao Tang" application to be an open banking platform to support new features and partnerships with other organizations in the future. In 2020, there were additional features that support government policies such as Wallet SBM, Rao Tiew Duay Kan (We Travel Together) campaign and Khon La Khrueng (50-50) scheme.
5. The Bank drove the 2 Banking Model, divided into a Carrier model, which is the Bank's core business operation, and the Speedboat model, which is an operation in the form of seeking new business opportunities through innovations and technologies. The Bank established an innovation lab in financial technology, or Innovation Lab and established Infinitas by Krungthai Co., Ltd., aiming to be a new digital financial product research and development company as well as exploiting resilient and agile functionality in flexible operation context through focusing to initiate innovation that connects the Bank’s 5 ecosystems.

Risk management in Product Process

       The bank has set up Product Committee (PC) to approve new products and review products under incorporating risk criteria in line with the bank's policies and strategic plans. Furthermore, the bank has established product assessment to ensure that the product development and product review processes have covered all risks and necessary functions.