KASIKORNBANK Financial Overview

K EXCELLENCE KBank Risk Management Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The Bank's organization has been structured to facilitate all aspects of risk management; each business unit's responsibilities and segregation of duties have been clearly identified in accordance with good internal-control practices Audit Committee Board of Directors ■ Approve all risk management policies and guidelines; approve risk limits and risk appetites ■ Ensure the adequacy and effectiveness of risk management system and internal controls Risk Management Committee Sub-committee Credit Policy and Risk Management Sub-committee Credit Process Management Sub-committee Market Risk Management Sub-committee Asset and Liabilities Management Sub-committee Operational Risk Management Sub-committee Capital Management Sub-committee ■ Oversee and monitor risk management policies and overall risk profile under the policies and guidelines approved by the Bank's Board of Directors Business Functions CBS/ RBS/ Risk Functions ERM SME/ CMB/ CSP ■ Business functions are accountable for managing all risks inherent in their day-to-day activities ■Risk functions are responsible for risk management policies, methodologies, and processes in order to effectively measure, monitor, and control all related risks CBS Corporate Business Division, RBS = Retail Business Division, SME = SME Business Division, CMB = Capital Market Business Division, CSP Corporate and SME Products Division, ERM = Enterprise Risk Management Division บริการทุกระดับประทับใจ 337 37 K EXCELLENCE KBank Credit Risk Management Process Portfolio Management ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Determine portfolio by design i.e., portfolio target setting by key credit concentration dimensions (Country, Industry, Large Customer Group) and other sub portfolio dimensions based on value-based analysis ■Manage portfolio according to the Bank's risk appetite and concentration ■ Perform stress testing to identify portfolio weaknesses and proactively prepare appropriate management actions Origination Monitoring Collection & Recovery ■ Enhance decision making/supporting tools for more efficient return and risk evaluation ■ Setup specific prescreening criteria for potential industries Enhance customer income validation process ■Monitor customer behavior and detect early warning signs ■ Ensure credit condition compliance (e.g. insurance, capital injection, project progress) ■ Take prompt actions to prevent credit deterioration ■ Efficient collection and follow- up of customers with late payments ■Restructure viable customers to prevent NPLs ■Foreclose pledged assets to recover loan loss บริการทุกระดับประทับใจ 38

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