Five-step approach for assessing material issues involved:
The Bank recognises the importance of maintaining a strong focus on issues material to its stakeholders. The nature and potential impact of these material issues may vary and change over time. The top 13 areas and the risks and opportunities are as given below:
Being a domestic systemically important bank in India, we are exposed to various compliance requirements. The Bank has to ensure robust policies and processes, and there are no deficiencies in meeting evolving requirements on an ongoing basis. Any deficiency could lead to reputation risks and a breach of trust.
There is an opportunity to engage constructively with policy makers and advocate adoption of best practices for building resilience in the financial sector and supporting a growing economy.
We strive to be a responsible organisation with continued efforts at embedding a strong risk and compliance culture. The Bank remains vigilant of the evolving regulatory landscape, while ensuring that operations follow standards established by regulatory bodies.
The Bank’s control functions ensure that businesses and operations are aligned with best practices.
The increasing volume of digital transactions requires us to ensure availability and scalability of systems. A misalignment between business and IT strategies is a risk. An elongated period of downtime in the Bank’s digital channels could lead to operational and reputation risks for the Bank.
Digital innovations provide an opportunity to differentiate our offerings, with seamless and secure customer experiences. This can provide competitive advantage and gain customer confidence.
We aspire to create digital innovations with rich features and functionalities for customers. The Bank’s digital platforms have transformed to provide seamless digital journeys. The open architecture platforms have enabled us to extend banking services to non-ICICI Bank account holders.
Lack of robust data governance practices could increase the risks of non-compliance, regulatory fines, financial losses and reputation risk. The cybersecurity landscape is also highly dynamic and exposes the Bank to significant challenges to ensure safety and security of customers’ money and personal identity.
Strong governance and a robust cybersecurity and data privacy strategy can create confidence in the institution and also differentiate us as a responsible organisation with customer interest paramount.
Dealing with cyber risks form an integral part of the Bank’s enterprise risk management framework. The Bank is committed to working towards aligning itself with the changing landscape and has a dedicated team for cyber/ information risk management.
Ensuring strong governance practices and communicating the same across all levels in the Bank is important to build a culture that ensures business outcomes are delivered in the right manner and with responsibility. Banking is a business of trust, and failures caused by ethics, values and behaviours can cause reputation risk and could create significant costs to the Bank.
Embedding the right culture takes time to establish and begins with strong corporate governance and business ethics, which will ensure long-term sustainability of the organisation
We have established effective policies and frameworks that encourage employees to act in accordance with the highest professional and ethical standards. Regular communication and training of employees is also undertaken.
Transparency is integral to good governance. Ensuring transparency in our engagement with customers and providing information of our products and services can enable customers to take sound financial decisions. The Bank recognises the responsibility and importance to be honest in its dealings with stakeholders.
The Bank seeks to engage constructively and responsibly in its area of operations. This is critical to build trust in the Brand, and with direct consequences to our business. The Bank also aims to ensure fair and balanced disclosures of its financial performance, with additional relevant disclosures made as and when required.
We recognise the criticality of transparency and disclosures, whether about the products we offer, our engagement with stakeholders or our contribution to society. The Bank aims to maintain robust governance and ethical and transparent relationship with all stakeholders.
Customer demands are evolving and digitisation has created new dimensions in banking services. Continuous value creation and superior banking experiences have become important considerations for customers. Lack of innovation and a customerfirst approach could result in obsolete service delivery, meeting limited needs of customers and a loss of trust.
Digitisation and the rapid adoption of smartphones has given banks an opportunity to explore new ways of banking and providing customers with unique offerings and with convenience.
Our Customer 360º approach and digital capabilities have strengthened the Bank’s value propositions for customers. Actively listening to our customers has helped improve the Bank’s offerings to customers, and reflects in the advocacy scores for the Bank.
Failure to serve with customer-appropriate product offering, or value-add for customers or inappropriate conduct can lead to loss of trust and risk the reputation of the Bank.
Banking is a business based on trust, and requires high level of customer-appropriate conduct. Generating business while protecting the interests of customers contributes to attracting depositors and growth in business.
The Bank’s philosophy of ‘Fair to Customer, Fair to Bank’ emphasises the need to deliver fair value to customers, including selling products and offer services which meet societal needs and are in the interest of customers.
The Bank’s ability to adapt to any challenges posed by the external environment and swiftly prepare for compliance with evolving regulations is key to deliver consistent financial performance.
The Bank’s approach is to identify micromarkets which hold high potential & increase market share by serving customers with 360º solutions as well as engage with all key stakeholders. This provides opportunities to penetrate the deep market in India.
Our strategic focus is to grow the core operating profit less provisions within the guardrails of risk and compliance. We are investing in areas that are critical for improving productivity and operational efficiency.
The Bank is exposed to several risks and the ability to manage various types of traditional and emerging risks is critical for sustainable growth of the Bank.
Dynamic risk management and understanding the opportunities and challenges associated with participating in strategic opportunities is the bedrock for robust growth of business.
The Bank continuously reviews the operating environment and closely monitors significant risks that could impact business. The Bank’s Enterprise Risk Management and Risk Appetite Framework articulates the risk appetite, and drills down the same into a limit framework for various risk categories under which various business lines operate.
Strong management development and succession planning are important for the successful implementation of our strategy and stability of the organisation.
Leadership development and commitment to attracting, developing and retaining a diverse and inclusive workforce can enable the Bank to deliver strong and consistent results.
The Bank has adopted the principle of ‘One Bank, One Team’, and has accordingly structured its human resource management practices, including key performance indicators, providing operating flexibility and accountability to business centres and a shift from grades to functional designations at senior levels. These are aimed at greater agility and synergy across the organisation and are supporting improved business performance and financial results.
The climate challenge and a fast transition to a low-carbon economy could give rise to new types of risks that may not be fully understood.
Using our financial expertise to provide capital to low-carbon sectors and new business opportunities in this space, based on appropriate risks and return assessment. We are committed to supporting customers as they decarbonise their business.
The Bank has been supporting capacity creation in environment-friendly areas, such as renewable energy, use of electric vehicles and development of green buildings, with an appropriate risk-return assessment. There is also a focus on promoting biodiversity and protecting our ecology through the Bank’s CSR initiatives.
Assessing the environmental impact of the Bank’s own operations and facilities will be necessary to develop the Bank’s own roadmap towards carbon neutrality/net zero in own operations.
Being in the service industry, the carbon footprint from own operations is not expected to be significant and would be manageable.
The Bank is committed to minimising the environmental impact of its operations and facilities. It is working towards meeting this objective by adopting best practices and certifications for green standards in the Bank’s operations.
The Bank’s Board has emphasised the need to evaluate the impact of risks posed by climate change.
Significant opportunities are likely to emerge as efforts to meet national commitments towards sustainable growth and transition to become net zero by the year 2070 gains traction. The Bank has been supporting environmentally favourable projects based on an appropriate risk-return assessment.
The Bank has established adequate policies and frameworks for evaluating climate-related risks in the lending book. At the same time, assessment of the portfolio to climate risks has been included as part of stress testing as well as capital planning exercise.
Risk Governance Framework 
