Internal Control System

The Internal Control System (ICS) of ABBank includes all auditing mechanisms and procedures that at any given moment cover all activities and contribute to the effective and secure operation of the Bank. The Bank’s Board of Directors is responsible for establishing and monitoring the adequacy and effectiveness of the internal control framework, its procedures and mechanisms, as well as overseeing all business areas and internal units, including the internal control units (Risk Management Unit, Regulatory Compliance Unit, and Internal Audit Unit). The internal control framework covers the entire Bank and includes the responsibilities and duties of the Board of Directors, the activities of all business areas, internal units, and internal control units, outsourced activities, and distribution channels.

The institution’s internal control framework ensures:
a. effective and efficient operations,
b. prudent conduct of business activities, as well as the consistent implementation of the business strategy through the efficient use of available resources,
c. appropriate identification, measurement, and mitigation of risks,
d. reliability of financial and non-financial reports submitted internally and externally,
e. sound administrative and accounting procedures, and
f. compliance with laws, regulations, supervisory requirements, and the institution’s internal policies, procedures, rules, and decisions.      

Internal Control Units

The internal control units include:
• The Risk Management Unit, 
• The Regulatory Compliance Unit, and
• The Internal Audit Unit.

The Risk Management and Regulatory Compliance Units are subject to evaluation by the Internal Audit Unit, among other things, with regard to the adequacy and effectiveness of their processes. Senior officers responsible for the internal control units are appointed at an appropriate hierarchical level to ensure they possess the necessary authority and status required to carry out their duties, and they are independent from the business areas or units/functions they oversee. To this end, the individuals heading the Risk Management, Regulatory Compliance, and Internal Audit Units report and are accountable directly to the Board of Directors, or through its respective Committees. More Specifically:      

Risk Management Unit

The Risk Management Unit of ABBank ensures the existence of an appropriate risk management framework, as well as the identification, measurement, assessment, management, mitigation, monitoring, and proper reporting of all risks by the respective units of the Bank. It also independently assesses breaches in risk appetite or risk limits and informs the relevant business units of the Bank and the Board of Directors, proposing possible corrective actions. ABBank’s Risk Management Unit also conducts stress testing exercises in accordance with the provisions of Executive Committee Act 208/3/28.06.2022 and submits the relevant results to the Bank of Greece. It also prepares the necessary reports to ensure the Board of Directors is fully informed about matters within its scope of responsibility.

The Risk Management Unit operates independently from other business units, has access to all Bank structures and is managed by the Chief Risk Officer (CRO). The Risk Management Unit focuses on strictly following policies and procedures, globally managing the different types of risks as well as on specifying the acceptable level of risk-taking when business decisions are taken and business objectives are set.

Regulatory Compliance Unit

The Regulatory Compliance Unit has been established as a permanent, independent, and effective function of the Bank, that is assigned with the task of implementing the policy set by the Bank’s Board of Directors on its compliance with the applicable legal and regulatory framework. The Regulatory Compliance Unit has unrestricted access to all data and information necessary for the fulfillment of its duties and is headed by a designated individual (Chief Compliance Officer) with sufficient knowledge of banking and investment activities. 

Internal Audit Unit

The main role of Internal Audit Unit in ABBank is the independent, reasonable and objective confirmation given to the Board of Directors and the Bank’s Management that the objectives of the Internal Control System have been achieved. The role of the Internal Audit Unit is to help the Bank achieve its objectives by adopting a systematic and strict approach in order to assess and improve the effectiveness of risk management procedures, the means for control and corporate governance. The Internal Audit Unit reports to the Board of Directors of the Bank through the Audit Committee.