Risk & Compliance
Risk management is at the core of Gatehouse’s financing philosophy and will play a vital part in the prudent growth of the Bank’s business. Gatehouse's risk appetite is for exposure against defined target clients of sound financial strength and integrity, as well as a core competency, and the Bank offers a focused range of products designed to meet its clients’ needs.
Gatehouse only engages in activities where it possesses the expertise to identify, quantify and manage the risks inherent to the underlying transaction. Gatehouse complies rigorously with FSA directives and Basel II recommendations and with due regard to the governance standards issued by the Islamic Financial Services Board (“IFSB”).
Gatehouse’s risk management framework has three lines of defence: the Board of Directors, the Board and Executive Committees and the Bank’s day-to-day processes and procedures. The risk function is divided into three key areas:
- credit risk
- market risk
- compliance and operational risk
Compliance and Operational Risk
The Bank’s Compliance Department is responsible for ensuring that Gatehouse complies with all its legal and regulatory obligations in both the UK and wherever it conducts business globally. The Gatehouse compliance model enforces both the FSA rules within its UK operations and uses these standards globally, where applicable.
Operational risk is the risk of direct or indirect losses resulting from inadequate or failed internal processes or systems, human factors, or from external events. Major sources of operational risk include: operational process reliability, IT security, outsourcing of operations, dependence on key suppliers, implementation of strategic change, integration of acquisitions, fraud, error, customer service quality, regulatory compliance, recruitment, training retention of staff and social and environmental impacts.