OUR EVALUATION CRITERIA

The evaluation criteria for each of our product, process, digital and frictionless and technology awards are designed very specifically to be able to capture quantifiable insights, but predicated by a "Belief Statement" that captures what we are looking for.

Each Belief Statement can be broken down into its "Elements" so that players will know exactly what we are looking for and how much weightage we give to each of them. Each of the "Elements" are supported by quantifiable data, some which are specific financials and others which are proxies for conceptual areas, and we add them all up into a scorecard.

The scorecard is useful for many purposes. It attempts to be as objective as it possibly can be, and transparent so that it gives us the opportunity to discuss with the different participants what we thought we understood. From this, we are also able to subsequently draw up GAP analysis that can be used in any benchmarking exercise.

THE RETAIL FINANCE PRODUCT AND PROCESS AWARDS
The following are our core "Belief Statements" for each of the awards in this category. Each Belief Statement can be broken down into its elements, which are in turn made up of the quantifiable data that we look for in our audit document and interviews. These are then published in selecting the winners as a form of transparent assessment, that can also be used to discuss the basis from which we arrive at our conclusion. These insights are also used to benchmark players and discover GAP analysis in future assessments.

The Deposit Product of the Year
We believe that the deposits business is a demonstration of an insitution's strength in terms of franchise and retail distribution channels, as well as its proximity to customers and their ability to effectivelly sell a wide range of new and existing products in the local marketplace.

The Retail Payments Product of the Year

We believe that a successful retail payments project or product is one that enables real-time or offline, secure and end-to-end completion of low-value transactions for the largest possible number of customers and issues.

The Best Remittance Product and Service of the Year

We believe that remittance services require the execution of large volumes of instantaneous global transfers for low value transactions at the lowest possible per transaction cost that is passed on as a value proposition to the largest number of customers possible.

The Credit Card Product of the Year
We believe that credit cards are highly effective customer acquisition platforms that must demonstrate the ability to convert its base into sticky and active users with low delinquency, supported by a robust analytics-based marketing and loyalty programme.

The Mortgage and Home Loans Product of the Year
We believe that a strong mortgage business is denoted by market share, volume and number of customers, ability to maintain spreads over economic cycles, strong customer equity portfolio and low delinquencies, supported by strong origination and customer support capabilities to achieve a profitable portfolio.

The Consumer Finance Product of the Year
We believe that consumer finance is a highly effective entry-level customer acquisition platform, but is successful only when a percentage of customers bring on board on and offline their re-current and long-term revolving credit, deposits and consumer finance relationship with low delinquency costs.

The Automobile Lending Product of the Year
We believe that leaders in the automobile finance business are defined by their distribution model, be it digital, direct or agency driven, and the capability to acquire customers through market leading turnaround time and quality service, and whose assets demonstrate strong risk management over several market cycles.

The Best Digital Lending Product
We believe that a digital lending product incorporates innovative models in enhancing loan origination and decisioning, risk profile assessment, sourcing capital, while also providing a seamless experience to customers across a wide range of income segments.

The Digital Wallet of the Year
We believe that a digital wallet should allow customers to conduct the widest possible choices of digital payment transactions seamlessly, instantly and securely.

The Best Business Model
We believe that successful business model is one that demonstrated sustainable revenue enhancement and diversification strategies. In doing so, it recognises innovative programmes to serve new or underserved customer segments utilising new or re-engineered products delivered through new or re-engineered delivery channels.
THE RETAIL FINANCE DIGITAL AWARDS
The following are our core "Belief Statements" for each of the awards in this category. Each Belief Statement can be broken down into its elements, which are in turn made up of the quantifiable data that we look for in our audit document and interviews. These are then published in selecting the winners as a form of transparent assessment, that can also be used to discuss the basis from which we arrive at our conclusion. These insights are also used to benchmark players and discover GAP analysis in future assessments.

The Digital Awards are made to players who have achieved specific goals in the digital part of their infrastructure, business or customer relationship.

The Best API Initiative, Application or Programme
We believe that open application programming interfaces (APIs) are able to create powerful synergies between an institution's products and service propositions and its customers, exposing data and services externally and internally, to partners and mobile devices. Complete API management platforms are also able to maximise business value and deliver APIs that developers and business owners will support.

The Best Automated ChatbotInitiative, Application or Programme
We believe that successful chatbot services are not only able to interact with customers via multi lingual text and voice interfaces but offer highly relevant cost efficient proprietary services to its customers on top of a generic AI engine

The Best Robo Advisory Platform
We believe that successful automated advisory platform is not only able to on-board customers into wealth management services in the most cost efficient and convenient way, but would also able to create new forms of customer value around advisory.

The Best Blockchain Initiative, Application or Programme
We believe that the best blockchain initiative, application or programme launched innovative use cases allowing network participants to connect directly and form online networks, removing the need for middlemen.

The Best Digital Brand Initiative, Application or Programme
The Asian Banker assesses the institution's efforts to create a strong brand identity to build consumer mind share, persuade and realistically demonstrate the brand's relevance to a customer's daily life

The Best Digital Compliance Initiative, Application or Programme
The best compliance initiative, application and programme effectively identify, own, manage and mitigate ethics and compliance risk in critical areas such as sales and marketing, finance and accounting, risk management, IT and data privacy.

The Best Digital Sales Initiative, Application or Programme
The best customer-centric sales initiative, application and programme creates timely, relevant and needs based customer propositions which result in positive customer experience, customer loyalty and increased profits.

The Best Credit Evaluation Initiative, Application or Programme
The best digital compliance initiative, application and programme effectively identifies, owns, manages and mitigates ethics and compliance risk in critical areas such as digital on-boarding, e-KYC , authentication and identification of clients.

The Best CyberRisk Management Initiative, Application or Programme
We believe a successful cyber security risk management initiative must continuously address the evolving risks by demonstrating, on an enterprise level, the ability to identify and prevent instances of cyber frauds, thefts and intrusions to the bank's network or systems while ensuring smooth and safe operations of the institutions.

The Best Data Analytics Initiative, Application or Programme
We believe that the application of data and analytics must demonstrate the ability to convert actionable information, gained from collecting, processing and analysing large data sets into, real business drivers, making an impact on the banks top and line growth.

The Best Digital Distribution Network of the Year
We believe that the best distribution network are designed to maximising the scope of an institution's footprint through physical and digital channels to serve the transactional, advisory and product needs of the largest numbers of visitors in the most cost efficient manner, using both human and automated devices consistent with their brands.

The Best Digital Employee Engagement Initiative, Application or Programme
We believe that a well-run institution builds inclusive workplace environments where flexibility, diversity and value-based behaviour is celebrated and rewarded to create a highly engaged front line workforce. The areas of assessment are: employee development, employee engagement (internal), performance/reward structure and employee involvement (external).

The Best IoT Initiative, Application or Programme
The best IoT initiative, application or programme creates offers a superior client engagement by meshing IoT with other emerging technologies to create powerful value propositions for new and existing clients, autonomous agents and market places.

The Best Productivity, Efficiency and Automation Initiative, Application or Programme
We believe that a successful productivity, efficiency and automation initiative, application or programme enhances the institutions processes and optimises operations which allows the institution to better serve the consumers at faster and less costly manner.

The Best Digital Retail Operational Risk Initiative, Application or Programme
We believe that a bank with a successful retail credit and operational risk management possesses: (a) an excellent on and off balance sheet position demonstrated by exceptional key credit risk ratios, and (b) processes for risk assessment, risk decision-making and risk control implementation to ensure proper measurement and mitigation of operational risk.
THE RETAIL FINANCE FRICTIONLESS AWARDS
The following are our core "Belief Statements" for each of the awards in this category. Each Belief Statement can be broken down into its elements, which are in turn made up of the quantifiable data that we look for in our audit document and interviews. These are then published in selecting the winners as a form of transparent assessment, that can also be used to discuss the basis from which we arrive at our conclusion. These insights are also used to benchmark players and discover GAP analysis in future assessments.

The Frictionless Awards were created to recognise initiatives, applications or programmes that seek to streamline processes, supply chains and customer experiences such that the customer can apply financial services in their everyday lives.

The Best Frictionless E-Commerce Proposition
The best e-commerce propositions are able to successfully connect digital marketplaces with value added lending and payments services in the most seamless and accessible way.

The Best Frictionless Financial Inclusion Initiative, Application or Programme
We believe that a financial inclusion initiative, application or programme brings in more consumers into the financial system by providing alternative and innovative solutions to underserved segments in which credit and financial products are limited.

The Best Frictionless Internet Banking Initiative, Application or Programme
We believe that the best Internet banking capability is one that enables customers to access information, conduct transactions or purchase financial products and services in the most intuitive and secure manner possible that is consistent with the lifestyle needs of the target customer, while at the same time enabling the bank to communicate its messages.

The Best Frictionless Mobile Initiative, Application or Programme
The best mobile initiative, application or programme offer a wide range of relevant functionalities and finanancial and non financial features to acquire a maximum number of active users while ensuring high-level security and outstanding user experience.

The Best Frictionless Mobile Payments Service
We believe that the best mobile payments product is one that demonstrates the use of the full range of current mobile device technology for financial transactions and services and in the most intuitive and secure manner possible.

The Best Frictionless Network Integration
A successful network integration is one that demonstrates efforts to integrate a diverse mix of network points to deliver services and products in the most consistent and unified manner possible, driven by business Intelligence, real-time data management, CRM, cross-channel implementation and channel cooperation.

The Best Frictionless Social Media Initiative, Application or Programme
We believe that a successful social media initiative application or programmes engage in new ways of communication, and the distribution of financial services and products to create not only trust, responsiveness and loyalty but also better leads generation and conversion of new customers.

The Best Frictionless Customer Relationship Management
We believe that a well-run customer relationship management includes customer loyalty, customer advocacy and retention initiatives, sales processes as well as all initiatives around customer relationship management at the front, middle and back office.

THE FINANCIAL TECHNOLOGY INNOVATION AWARDS

Best AI and Robotics Initiative, Application or Programme
We believe that a successful Artificial Intelligence (AI) initiative maximises utilisation of the machine learning, robotics, cognitive computing and data analytics technologies to improve customer experience with operational efficiency, productivity, risk management, reduced errors and faster turnaround time, all in a manner that is consistent with the organisation's brand. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget. The current implementation success, impact of business and potential disruption as well as scalability will be key considerations

Best ATM and Kiosks Initiative, Application or Programme
A successful ATM (or Kiosk) implementation project is the one that optimises operational cost for the bank in handling of cash and other automated transactional activities delivered in a safe and secure environment, while achieving measurable customer origination, selling and cross-selling goals. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget.

Best Branch Digitisation Initiative, Application or Programme
We believe that a successful branch digitisation initiative is one that maximises utilization of the branch and digital footprint to increase numbers of satisfied customers drawn to branches or new digital access points, improving access to new customers, improved staff productivity, reduced teller error rates and improved customer fraud management procedures, resulting in higher cross selling rates and customer satisfaction, all in a manner that is consistent with the bank's brand. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget.

Best Cloud Based Initiative, Application or Programme
A successful cloud based programme is one that demonstrates the bank's ability to securely access and process data in publicly available networks and interface with its own proprietary customer data to implement commercially successful programmes. This service delivery model is considered successful when the bank can demonstrate that the selection of a cloud based strategy is the optimal delivery model for current and future strategic developments, and that the IT services provided integrate seamlessly, are reliable, secure and maintained and the IT services contract delivers a competitive cost of transaction and service standards.

Best Core Banking Initiative, Application or Programme
We believe that a successful core banking system implementation project is one that takes the bank away from "account centricity" and closer to "customer centricity" within an architecture that will support the bank's growth, and gives the bank measurable productivity gains, helps manage risk and credit exposure, at a lower total cost of ownership than any systems replaced. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget.

Best Corporate Payment Initiative, Application or Programme
A successful corporate payments implementation project is one that enables real-time and secure completion of low or high value transactions, supporting end-to-end supply chain, high STP and exceptions processing capabilities, multiple business goals, multiple accounts and multiple currencies, regardless of messaging formats, utilizing multiple channels or devices at the lowest possible cost per transaction and minimum error rates, in a regulatory compliant manner. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget.

Best Enterprise Governance, Risk and Compliance Initiative, Application or Programme
A successful governance, risk and compliance (GRC) implementation project reduces the cost and effort needed to proactively prevent risk events and compliance violations by providing real time insight and automation of GRC processes. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget.

Best Financial Supply Chain Initiative, Application or Programme
A successful financial supply chain (FSC) implementation project enables corporates and their extended supply chains to exchange financial instruments, access working capital financing and manage payments and receivables in real-time, in multiple currencies, through secure, multiple channels, regardless of messaging format, with minimum error rates in a regulatory compliant manner and for the bank to track and manage credit risk for any of the trading parties for whom financing is provided. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget.

Best HR Technology Initiative, Application or Programme
A successful HR system implementation project is one that supports all HR functions end to end with high STP on an enterprise level basis and integrates with the accounting and other critical administrative functions of the organization, while ensuring individual talent and performance tracking. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget.

Best Mobile Security Initiative, Application or Programme
A successful mobile security implementation project must continuously contribute to the avoidance of operational risk by demonstrating the ability to identify and prevent active instances of quantifiable fraud or other threats/intrusions to users of the bank's systems accessing the bank though mobile devices. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget.

Best Regulatory Technology Initiative, Application or Programme
We believe that a successful regulatory technology initiative utilises information technology to enhance and digitise regulatory processes with a focus on regulatory monitoring, reporting and compliance while ensuring transparency as well as consistency in regulatory reporting process. It facilitates reduced cost and resources to proactively prevent risk events and compliance violations by providing a data analytics based real time insight, addressing risks and ensuring effecient regulatory compliance. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget.

Best Self-Service Banking Initiative, Application or Programme
A successful self service banking implementation project is one that both optimises operational costs for the bank and maximises utilisation of the footprint available for a full range of transactional activities delivered within a secure environment, while achieving measurable customer origination, selling and cross-selling goals. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget.

Best Treasury Management Initiative, Application or Programme
A successful treasury management system implementation is one that provides full and real time transparency and control of financial information generated by both simple and complex instruments, including cash, handled by the bank. It has full integration with systems supporting risk management, reporting and business users of the bank's ongoing funding capabilities, without compromising on the separation of front and back office. The implementation process starts with a clear business case, balances the risks involved, considers a variety of alternative approaches and delivers the project within time and budget

Financial Technology and Platform awards
We believe that a successful financial technology platform is one that has a believable business proposition in solving a real business need, with a potential to cause a fundamental transformation or disruption in the financial services industry and to generate scale across regions. Appropriate financial support from the right investors as well as having an installed customer or user base is proof of concept and important evidence that third parties have thoroughly evaluated the proposition and are willing stakeholders. In addition a robust execution capability, strong people commitment, ability to fund its growth trajectory and the drive and vision of the principle promoters are important consideration to its success.

Best Innovation Centre Award
A successful innovation centre is the one that is designed and created to speed up work on disruptive and innovative products and technologies, towards executing effective innovation programmes for financial services industry, with the aim to help the institution be successful both with its clients and employees. The key achievements of the innovation programme, size and complexity of technology initiatives, creative thinking, success in implementing live projects and the performance indicators that demonstrate the impact of these initiatives on the business are important consideration in evaluation.

THE CRITERIA FOR THE RISK MANAGEMENT AWARDS

All submissions will be evaluated on their own merit and considered for the most appropriate awards. Submissions may be considered for multiple awards as well. The bank and/or technology partner's answers, both in the submission kit and during the interview process, should satisfy the list of internal infrastructure, composition of balance sheet and response capabilities that we are attempting to identify and benchmark. This will help us in completing our assessment of the bank for the period under review.

THE ACHIEVEMENT IN ENTERPRISE RISK MANAGEMENT SCORECARD

We believe that institutions with exemplary enterprise risk management are able to withstand changing political, economic, regulatory and global market conditions to comply with their strategic objectives. The organization would have demonstrated integration of its risk capabilities and coordination efforts, forming the core of a robust enterprise risk framework. Superior enterprise risk management practices should enable the organization to mitigate all relevant risk exposures on an enterprise-wide basis, across all silos.The bank should have also successfully undertaken an enterprise risk management initiative in the year under review.

No. Pillar Parameter Description
1. Monitoring, Reporting, Control and Mitigation of Enterprise Risk Risk Appetite & Strategy Alignment Demonstrated capacity to identify and exploit opportunities while managing risks that can impact strategic objectives.
Enterprise Risk Identification Constituted processes to define significant risk exposures. Particular events or circumstances relevant to the institution's goals are identified.
Enterprise Risk Analysis & Assessment Conducts scenario analysis based on likelihood of occurrence and size of impact. Assements constitute risk tolerance levels.
Enterprise Risk Response & Treatment Management appropriately selects risk responses and develops a set of actions to align risks with the entity’s risk tolerances and risk appetite. Policies are established and implemented to ensure the risk responses are effectively carried out.
Enterprise Risk Reporting & Monitoring Formal procedures in place for risk reporting and monitoring. Execution of action plans by senior management. Review of significant risk exposures by key stakeholders.
Business Resilience and Continuity Implementation of effective business continuity plans. Disaster management training & awareness.
2. Achievement in the year under review Achievement and Business Impact Projects undertaken by the institution streamline and strenghten the ERM assessment and monitoring capability resulting in an improvement in the deployment of capital. Discernible level of integration achieved and ability to manage cross-organisational risks is realised.

THE ACHIEVEMENT IN LIQUIDITY RISK MANAGEMENT SCORECARD

We believe that institutions with exemplary liquidity risk management are well-equipped to address unforeseen cash flow constraints. Three liquidity management functions that are of particular interest in our assessment are day-to-day cash management, longer-term cash flow management as well as liquidity risk management in times of crisis. We expect the qualifying bank to possess an excellent balance sheet position and is able to monitor and manage liquidity risk, while handling market perception well. The bank should have also successfully undertaken a liquidity risk management initiative in the year under review.

No. Pillar Parameter Description
1. Balance Sheet Position Tier-1 ratio Banks will be ranked and scored based on their Tier-1 capital ratios.
Loan-to-deposit ratio LTD will be considered on the basis of the country specific trends and scores will be provided by country. The normalised scores will indicate a ranking of the amount leverage on core deposits.
Liquid assets as a proportion of total deposits and short term borrowings This evaluation criteria aimed at understanding the speed with which a bank can dispose of its assets to raise cash will classify liquidity of assets based on market conditions in the respective countries.
Liquid assets as a proportion of total deposits and short term borrowings This evaluation criteria aimed at understanding the speed with which a bank can dispose of its assets to raise cash will classify liquidity of assets based on market conditions in the respective countries.
Liquid assets as a proportion of CASA In a challenging environment, it is often the CASA deposits that are the first to be withdrawn. The %age of liquid assets to CASA will determine the ability of the bank to meet unforeseen events.
Interbank market lender or borrower (degrees) Banks will be ranked and rated on a scale of 0-5 (0 for the highest ratio value and 5 for the lowest), based on the value of the ratio of wholesale market liabilities total funding.
2. Monitoring Capabilities & Market Perception Measurement and monitoring processes and systems Banks will be rated based on the bank's monitoring capabilities for:(1) A clearly defined team and structure monitoring liquidity and market conditions with direct reporting to CFO (2) The strength of its collateral management system (3) The independence and structure of its ALCO and ALM teams (4) Bank has received the recognition from international standardisation organisations eg. ISO, Six Sigma, etc. (5) Availability of real-time information
Ability to borrow in the market and generate CASA and Deposit Growth This factor will be based on the brand strength and historical success in raising money from the market or growing its CASA and deposit base. Scores will be provided by our advisors depending on the strength the franchisee and the market confidence it has.
3. Achievement in the year under review Degree of difficulty As part of the submission packages, banks will be required to submit the details of a major change initiative or difficult event that was managed by the team. This submission will be evaluated by our advisors keeping in mind competitive and market pressures.
Achievement and Business Impact

THE ACHIEVEMENT IN CREDIT RISK MANAGEMENT SCORECARD

We believe that institutions with exemplary credit risk management are equipped with effective credit scoring systems as well as sound and exhaustive measurement and monitoring processes . Loans are only made to credit-worthy borrowers and excessive leveraging on its pool of deposits is avoided. The successful bank will possess excellent on and off balance sheet positions demonstrated by very good key credit risk ratios. The bank should have also successfully undertaken a credit risk management initiative in the year under review.

No. Pillar Parameter Description
1. Key Credit Risk Ratios Provisions for NPL / Gross NPL and Gross NPL %age Indicating the amount of coverage that the bank has maintained for their NPLs, this ratio will help in a normalized analysis of big & small banks.
Loan to deposit ratio Indicating leverage over the banks strength in liabilities. This measure will be based on the country dynamics and scores will be assigned on a peer-to-peer comparison.
Any large loan losses in the past 5 years Banks with large loan losses in the past 5 years will be viewed unfavourably.
2. Sound Credit Processes & Monitoring Tools Comprehensive risk assessment Bank to detail key assessment points they look into when assessing the risk profile of the borrowers. Scores will be granted based on the comprehensiveness of the assessment scorecard and a clearly defined escalation process.
Use of external and / or internal credit scorings Highest scores given to banks that use both external and internal loan credit ratings, followed by those who use solely external ratings, those who work solely on internal credit ratings. Lowest scores granted to banks who have no form of credit ratings.
Independent & on-going assessment Banks that have in place a board approved process for independent evaluation and review of the credit processes and tools will be given additional points.
Risk Analytics (Predictive / Reactive) Infrastructure capability to consolidate data across business units and run predictive or reactive analysis on the same.
Factors that will be considered ; having a focused team, technology used, real-time information, comprehensive consolidation of data, reactive or proactive approach
3. Achievement in the year under review Degree of difficulty As part of the submission packages, banks will be required to submit the details of a major change initiative or difficult event that was managed by the team. This submission will be evaluated by our advisors keeping in mind competitive and market pressures.
Achievement and Business Impact

THE ACHIEVEMENT IN MARKET RISK MANAGEMENT SCORECARD

We believe that institutions with exemplary market risk management are able to limit their exposure to market changes. Moreover, they must possess the capability to cope with crisis that is evidenced by stress testing results. Sound market risk management processes and exhaustive monitoring tools are in place. The bank should has also successfully undertaken a market risk management initiative in the year under review.

No. Pillar Parameter Description
1. Sound Processes & Monitoring Tools Comprehensive risk assessment Banks will be ranked based on: (1) Frequency of conducting scenario stress tests. (2) Public disclosure of test results (3) Market reaction to stress results.
Securitisation exposures Banks will be ranked based on: (1) How exposed the bank is to market changes (foreign exposure) (2) the credit ratings of the market the banks is being exposed to (based on international ratings) (3) Past performance during the crisis.
Independent & on-going assessment Banks that have in place a board approved process for independent evaluation and review of the market risk processes and tools will be given additional points. Banks will also be marked up or down based on the frequency of these reviews.
Risk Analytics (Predictive / Reactive) Infrastructure capability to consolidate data across business units and run predictive or reactive analysis on the same. Factors that will be considered; having a focussed team, technology used, real-time information, comprehensive consolidation of data, reactive or proactive approach.
2. Achievement in the year under review Degree of difficulty The constant changes happening in the market mean that banks need to be ever more nimble in their response to critical events and hence constantly update their Market Risk Management processes and systems. In this parameter we will review the success of a specific project / event that has either strengthened the market risk management capability or showcased a success.
Achievement and Business Impact

THE ACHIEVEMENT IN OPERATIONAL RISK MANAGEMENT SCORECARD

We believe that institutions with exemplary operational risk management have robust processes that are able to detect and mitigate possible system failures early on. The focus will be on the resiliency of bank infrastructure and frameworks to monitor and manage processes and resources which includes risk assessment, risk decision making and the implementation of risk controls to ensure proper measurement and control of operational risk. The bank also needs to have robust contingency planning and reporting mechanisms. The bank should have also successfully undertaken an operational risk management initiative in the year under review.

No. Pillar Parameter Description
1. Negative event in the year Loan Losses / Frauds We will glean for information from the news on any specific loan losses that have come to light in the year under review. Each such event will viewed unfavourably. However, we will consider the responsiveness of the bank.
2. Processes and Systems Technological outages Any form of technological outages in the year under review will be viewed unfavourably and the response to every such event will be rated on its handling and communication with customers and regulators.
Operational risk reporting Bank will be ranked and scored based on the practice and frequency of the following assessments; (1) Assessment of its processes underlying its operations against a libray of potential threats and vulnerabilities. (2) Risk control self assessment (RCSA) - Bank evaluates its inherent risk using RCSA scorecards.(3) Documentation and Business process mapping - Identifying key risk points in the overall business process. (4) Scenario analysis is conducted to identify potential operational risk events.
3. Monitoring, Reporting, Control and Mitigation of Operational Risk Reporting mechanisms Bank should have appropriate reporting mechanisms in place at the board, senior management and business line levels.
Operational risk reporting Banks will be ranked and scored based on the following; (1) Accuracy and timeliness of reporting, (2) Contents of the operational risk report including financial, operational and compliance indicators, as well as external market or environmental information. (3) Frequency of review of data capture and risk reporting processes.
Business resiliency and continuity Banks will be ranked and scored based on the availability and practice of these; (1) Business continuity plans and their review process (2) Training and awareness programmes (3) Communication and crisis management programmes.
Independent, ongoing assessment Banks will be ranked and scored based on the availability and practice of these; (1) Assessment of the bank's operational risk management processes is independent. (2) Independent internal audit coverage. (3) Processes are audited externally. (4) Clearly established authorities and processes for approval.
4. Achievement in the year under review Degree of difficulty Banks are encouraged to submit to us details of any projects undertaken in the business to review processes and systems and plug operational risks. Such projects will be evaluated on the basis of ; impact of business, potential risk mitigation, technological superiority
Achievement and Business Impact

RISK TECHNOLOGY IMPLEMENTATION SCORECARD

We believe that a successful technology implementation project establishes an architecture that will support the bank's growth, provides it with requisite operational gains and meets the related strategic risk management objectives. The implementation process starts with a clear business case, delivers the project as planned and results in measurable risk mitigation and control for the organization on a sustained basis.

No. Pillar Parameter
1. Scope of Project
  • International - # of countries served
  • International # of countries served in next 3 years
  • Integration # of busines lines impacted
  • Integration - # of past implementation updated
  • Kind of risk tackled - Liquidity, Credit, and/or Operational, Market
  • 2. Passive / Proactive implementation Responded to changes in regulation / business landscape(Define)
    3. Process of implementation
  • Implementation independent of regulatory changes/business changes (Optimization of current technology)
  • Anticipated changes in regulation / business landscape(Define)
  • Position of decision taker
  • Position of project leader
  • Highest level involved in the implementation decision
  • Time taken to complete implementation
  • # of internal personnel involved
  • # of external personnel involved
  • Cost of solution replaced
  • Cost of new solution
  • Cost of hardware replaced
  • Cost of new hardware
  • Expected time before next scheduled upgrade
  • Expected cost of next scheduled upgrade
  • 4. External Consideration
  • KPIs used to define success of implementation
  • Frequency of generated reports
  • Receipients of generated reports
  • As we continue to develop and refine our scorecards, we hope to present a better and more accurate instrument to gauge the performance of banks over a certain time period against that of their peers and competitors. Ultimately, the Risk Management Awards is intended not only as an awards programme, but also as a reflective opportunity. In that sense, the programme - and the scorecard - have been developed to enable banks to grow, evolve and expand.

    THE TRANSACTION AWARDS

    We assess transaction banks based on their ability to help clients take advantage of their supply & value chain dynamics and ecosystem by leveraging digital capabilities to meet their cash, trade and payments needs.

    INTERNATIONAL TRANSACTION AWARDS
    The international Transaction Awards are based on:

    • A survey of domestic banks in all of the different countries in the region on their opinion of foreign and international partner banks, corroborated by interviews.
    • Changes in market share of the different competitors in the respective markets or key business lines
    • The size and strategic importance of the transaction business as a percentage of the bank's corporate and FI business
    • Demonstration of the contribution of the business to total income.
    • Demonstration of the growing annuity value of the business by being able to demonstrate business or a customer base that is core and recurrent
    • The ability to describe the benefits of processing efficiencies and cost management that are passed on to their clients
    • The range and unique features of fee-based products and services that are not dependent on credit as the primary relationship and the value they provide to their clients.
    • The key achievements in the year under review.


    COUNTRY AND REGIONAL AWARDS
    The primary assessment for the Region's Best Transaction Award as the case may be given to the bank that excels in the full range of transaction services for that country, and may or may not be given in any year, depending on the nature of the competition and whether the different types of transaction services are dominated by different players and the operating macro environment.


    DOMESTIC TRANSACTION AWARDS
    The Domestic Transaction Awards are based on:
    • A survey of domestic banks in all of the different countries in the region on their opinion of foreign and international partner banks, corroborated by interviews.
    • Changes in market share of the different competitors in the respective markets or key business lines
    • The size and strategic importance of the transaction business as a percentage of the bank's corporate and FI business
    • Demonstration of the contribution of the business to total income
    • Demonstration of the growing annuity value of the business by being able to demonstrate business or a customer base that is core and recurrent
    • The ability to describe the benefits of processing efficiencies and cost management that are passed on to their clients
    • The range and unique features of fee-based products and services that are not dependent on credit as the primary relationship and the value they provide to their clients
    • The key achievements in the year under review.


    PAYMENTS AND CURRENCY CLEARING AWARDS
    The Best Global Clearing Bank award was introduced in 2015 to recognise the growing development and sophistication of multi-currency and cross-currency clearing capability of banks. Winning banks must ranked in the top 3 for clearing vulume (as recorded by national/regional clearing/payment system) for at least 2 major currencies (including the USD plus one other) as well as meet the assessment criteria of single currency clearing awards below:
    • A survey of domestic and international banks as well as leading corporates on their preferred counterparty banks to settle transactions for the currencies stated
    • The total vulume, the average per ticket size of transactions, the number of countries of origin or destination for payments to determine market share
    • The level of services inherent in the product including intraday liquidity, intraday clearing, the rule of credit, fees charged and other values to the client
    • KYC and other regulatory support services provided to ensure full compliance to domestic and international laws
    • Are domestic banks in the markets they serve able to downstream and white label these capabilities for their own domestic clients?
    This award takes into account changes in market share of the different competitors in the region, the range and unique features of products and services provided and the key achievements in the year under review.



    FRICTIONLESS TRANSACTION AWARDS
    As more and more banks move towards a product-centered approach to compete on their transaction banking business, we are now able to look more closely at individual products and the difference these are able to make to winning market share and delivering value to clients. In recent years, there has been a focus on mobile phone apps as the platform for delivering transaction banking products. We believe this is a temporary phase that will evulve into more substantial areas.
    As part of our assessment process, we find that we need to distinguish between products and services first before recognising the salient aspects of the products themselves. As such the criteria are:
    • A discernible product distinguished by a name, and supported by a set of functionalities that customers are able to use. A platform is useful (as in an app) but not a requirement. A good product might well be platform independent.
    • A strong set of core functionalities with data on vulume and frequency of usage by customers
    • Stated process and cost benefits in delivering service to customers.
    • A strong level of ubiquity which enables a customer to use the product "anytime anywhere"
    • A review of the organisation of the institution itself - that it is organised around the ability to support the product - with clear support staff, sales staff with personal KPIs to ensure the success of the product
    • Demonstrable testimonies and case studies of "sulving actual business problems for clients" - clients actually benefiting from the product.


    LEADERSHIP IN TRANSACTION AWARDS
    The industry is made of a long list of individuals who demonstrate considerable skill and perseverance. As such, making the choice of one individual for this personal awards is very difficult indeed. The overall purpose of this award is to set high standards in personal conduct and professional standards. The award is given to individuals who stand out heads and shoulders amongst their peers based on the fullowing criteria:
    • A distinguished career in financial services industry
    • Record of having led successful institutions
    • Vision, Verve and Fortitude
    • An impact that stands over and above those being achieved by his or her peers across the region, in a manner that can stand as a benchmark to the rest of the industry