VPBank has received the prestigious continental risk management award for the second time in a row

With the prestigious award “The Achievement in Enterprise Risk Management” presented by the reputable organisation The Asian Banker on August 3rd, 2021, VPBank has continued to affirm its leading position in risk management, on par with other leading Asian financial institutions.

In the second year participating in the award, VPBank once again was recognized by the The Asian Banker's independent evaluation panel consisting of the world's leading experts. The board highly appreciated the rapid adaptability of the risk management system at VPBank when encountering the negative impact of the Covid 19 pandemic, thereby accomplishing the strategic objectives, and achieving sustainable improvement in assets quality.

During many years of operation with pioneering steps, VPBank has been well prepared to maintain stable business operations and promptly respond to both fluctuations in the market and uncertainties posed by the pandemic’s complicated developments.

Based on the development of macro forecast for a 3-year horizon, VPBank has flexibly adjusted its risk appetite, financial planning and conducted internal assessment of capital adequacy (ICAAP) accordingly to material changes in the business environment during and post COVID-19. As a result, VPBank has successfully maintained a prudent risk profile by applying multifactorial behavioral customers’ risk governance. A sound liquidity risk management enables VPBank to maintain a solid capital base through optimizing balance sheet, diversifying funding sources and periodically executing liquidity stress test.

VPBank has steadily developed robust risk management framework following best practice that embedded in daily business decision making process, covering all the key risk management pillars such as ISO-certified information security management system, SNL platform, EWS top down and bottom up, state-of-the art rehabilitation. For more details:

  1. To have strong foundation for managing greater exposure to cyber risk, VPBank has been developing high-calibre IT and Information Security teams and investing in new advanced Information Security solutions/ services which was certified by international standards ISO/IEC 27001:2013;
  2. To proactively manage credit and counter party credit risk, VPBank launched automated SNL Platform (real-time updating and monitoring customer's credit rating given by Moody's, Fitch and S&P Ratings);
  3. To identify and early fix any potential credit issues, VPBank has developed the Early Warning Signals (EWS) system at both customer level and product level with top-down and bottom-up approaches. EWS is also employed for cross selling for green customers.
  4. To ensure the strongest support to customers during pandemic, VPBank has always been amongst the first banks to actively provide practical solutions helping impacted customers overcome current difficulties such as delivering online banking products/ services and supporting repayment given social distancing (account opening via eKYC identification, online overdraft loans and disbursement, online restructuring, diversified payment channels etc.).

A representative from VPBank said that “Developing a robust risk management framework in accordance with international best practices, in parallel with promoting digital transformation are the top priorities at VPBank. Thereby, with a solid risk management foundation, VPBank is committed to strongly supporting customers during these difficult times and confidently enhances investor confidence.”

“The Asian Banker's award becomes even more special since it is a deserving recognition for the restless efforts and close coordination of the whole VPBank family, when the “global economic picture” is bleak with "dark colors”. This achievement has demonstrated the Bank's strong risk management capabilities and the precise long-term orientation of the Board of Directors, marking a crucial milestone in the development process when placing VPBank on par with other continental leading financial institutions of Singapore, China and Philippines...”, shared a representative of VPBank.

Risk Management Awards is an annual, prestigious award presented by The Asian Banker to financial institutions in the Asia-Pacific, Middle East and Africa to recognize the best achievements and emerging best practices in the risk management field. The evaluation and ranking of award categories are entirely based on the capabilities of financial institutions, guaranteeing absolute neutrality. With a history of 25 years, the quality, prestige and reputation of the award have been highly appreciated by the international financial community, demonstrating its value and influence over various organizations, global financial institutions and regional banks.

The Achievement in Enterprise Risk Management award category seeks a financial institution with outstanding achievements in effective risk management practices, ensuring successful attainment of strategic goals despite material changes in the economy. Previously, in 2020, at Asia-Pacific Risk Management Award, VPBank was also honored by The Asian Banker in the category of The Achievement in Liquidity Risk Management”.

For further details, please contact: 1900 545 415 or (024) 7304 5415 or visit the website: www.vpbank.com.vn

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