The Board of Directors of People’s Leasing & Finance PLC which is primarily responsible for the integrated risk management initiatives has delegated its authority to the Board Integrated Risk Management Committee (“BIRMC” or “Committee”) to review and assess the adequacy and effectiveness of the risk profile of the Company and the Group, in terms of Section 8 (3) of the Finance Companies (Corporate Governance) Direction No. 03 of 2008.
In compliance with the aforementioned Direction, the TOR clearly sets out authority/delegations vested with the Committee, composition, responsibilities, meeting frequency and quorum, reporting and other procedures of the Committee.
Following the reconstitution of the Board of Directors of the Company on 19 February 2020 as mentioned on page 79 of the Corporate Governance Report, the BIRMC was reconstituted by the Board at its meeting held on 20 February 2020 and it presently comprises the following members:
|Name of the BIRMC Member||Directorship status|
|Mr Chanura Wijetillake||Committee Chairman (Non-Executive, Independent Director) Appointed to the Committee w.e.f. 20 February 2020|
|Mr Azzam Ahamat||Committee Member (Non-Executive, Non-Independent Director) Appointed to the Committee w.e.f. 20 February 2020|
|Mr Clive Fonseka||Committee Member (Non-Executive, Non-Independent Director) Appointed to the Committee w.e.f. 20 February 2020|
| Mr A S Ibrahim
(Chief Executive Officer/
| Mr Sanjeewa Bandaranayake
(SDGM – Operations)
|Mr Lionel Fernando (SDGM – Operations)||Non-Director|
|Mr Rohan Tennakoon (DGM – Risk and Control)||Non-Director|
Ms Akila Samarasinghe – Deputy Manager – Risk and control functions as the Secretary to the BIRMC.
Brief profiles of the Directors representing the Committee are given on pages 69 to 70 of the Annual Report.
According to the TOR of BIRMC and in line with the regulatory requirements, the Committee meetings should be held at least four (04) times a year on a quarterly basis. During the period under review, the Committee held only two (02) meetings and the reasons for the same are explained under “frequency of meetings” on page 106.
|Name||Attended/eligible to attend|
|Mr M P Amirthanayagam||*2/2|
|Mr Rasitha Gunawardana||*2/2|
|Mr M A M Rizwan||*2/2|
|Mr A S Ibrahim||2/2|
|Mr Sanjeewa Bandaranayake||2/2|
|Mr Lionel Fernando||2/2|
|Mr Rohan Tennakoon||2/2|
*Mr M P Amirthanayagam – Committee Chairman (Non-Executive, Independent
Deputy Chairman/Senior Independent Director) and Mr M A M Rizwan – Committee Member functioned as Committee Chairman and Committee Member respectively up to 24 October 2019. Mr Rasitha Gunawardana – Non-Executive, Non-Independent Director functioned as a Committee Member up to 19 February 2020.
Minutes of the Committee which include the deliberations and conclusions reached were submitted to the subsequent BIRMC meeting for the confirmation and adoption. All minutes of the meetings were formally approved by the Committee Chairman. Approved Minutes were also submitted to the Board within a week of the BIRMC meeting seeking their views, concurrence and/or specific directions.
The BIRMC effectively assisted the Board of Directors in performing its oversight function in relation to the internal/external risks faced by the Company in carrying out its business operations. All key risks tracked through Key Risk Indicators (KRIs) on a monthly basis are reviewed by the Committee at its meetings.
During the year under review, in line with the Finance Companies (Corporate Governance) Direction, No. 03 of 2008, Section 8 (3) (b), the following subsidiary companies submitted Risk Dash-board/key risk indicator reports to the BIRMC enabling the Committee to review the risk profile of each subsidiary company and the overall risk profile of People’s Leasing Group. Highlights of subsidiary company reviews are given below:
People’s Leasing Havelock Properties Limited and Lankan Alliance Finance Limited (People’s Leasing’s Bangladesh Subsidiary) commenced preparing Risk Indicator Reports and Risk Dash Board Reports respectively from December 2019 onwards. The relevant papers were discussed by the BIRMC at its meeting held in June 2020.
The Risk and Control Department co-ordinated with aforementioned subsidiaries of People’s Leasing and briefed the Committee with the relevant information through various risk indicators and additional information.
Detailed assessment on Group Risk is given on pages 137 to 138 in this Annual Report.
During the year under review, the BIRMC extended its support in line with the risk appetite and tolerance framework, in the execution of overall business strategy emphasising the upside and downside risks which can have an impact on the Company.
Board Integrated Risk Management Committee
8 July 2020