2021 ESG Report slide image

2021 ESG Report

11 2021 ESG Report Macroeconomic Stress Test CRCBANK 12 CSRC Bank conducts annual stress tests on the default rate of corporate clients and macroeconomic factors, and the results show a negative correlation between the default rate of the Bank's public clients and macroeconomic indicators, GDP and M2. Since 2019, the macroeconomic indicators are at historically low values, but the measures introduced by the government to reduce taxes and fees and financial services in response to the COVID-19 have effectively alleviated the difficulties in customers' operations. Overlaid with the relatively fast economic recovery and stable growth rate of CSRC Bank's operating regions, the default rate of public customers has remained stable. Risk Management Case Digital risk control efficiently supports online loan business In 2021, the Bank set up a digital risk control taskforce and a model review taskforce to improve the full lifecycle management mechanism of risk control models and enhance the independence of risk control. • Maintain the agility and effectiveness of risk control models ° Progressively empower the digital risk control middle office During the reporting period, CSRC Bank formulated and issued Risk Preference Statement, Risk Management Work Opinions, Approach to Emergencies and Information Security Continuity Plan, and improved the Public Health Incident Continuity Plan. We clearly required the entire CSRC Bank to prevent and resolve major financial risks, optimize credit resource allocation, focus on risk prevention and control, and build a comprehensive risk control system. "Regime+System", Strengthening the Pre-Event Preventaion ☐ Guided by 37 risk preferences, 168 limit management and implementation rules, we have built various system control platforms to achieve comprehensive joint prevention of systems and systems in credit management, risk warning, non-zero internal evaluation, operational risk, compliance and internal control, asset and liability management, etc. . Continuously integrate and update risk control models: iterated 138 risk control rules throughout the year, formed 607 risk control rules and 2 scorecard models for online products, and served 9 online products with 84,800 people using the credit Validated and optimized 5 types of internal evaluation models Explore new applications of credit scoring . Use credit scoring to analyze and calculate the future default rate of personal business and improve quantitative analysis capability Carry out unified management and monitoring of risk models Carry out risk model support Carry out risk data analysis support and optimizing applications Regular monitoring of online ⚫ business operations "Three+Three+Two" Mode, Strengthening Control over the Events "Point+Surface", Strengthening Post- Event Inspection ☐ We have dynamically managed the "three lists", namely the customer grading list, gray and black list, and associated customer list. ☐ The three key points of "large amount, small amount and stock" are tightly grasped and categorized to control large amount, enhance small amount and stratify stock. ☐ We have innovated joint review mode of "stagnation point risk review" and "expert risk review", cultivating 45 industry experts in 17 key industries to work in parallel. ☐ We have established a dynamic reporting and evaluation mechanism to regularly monitor and report comprehensive, special, major and unexpected risk reports. ☐ We have implemented regular risk inspections, realizing the organic combination of risk warning information push, daily annual inspection of post-loan management, and special inspection of business management. ☐ We have implemented dynamic risk assessment and dynamically adjust the ten-level classification results, customer classification results and credit programs depending on the risk inspection. Party-building Leading CSRC Bank has always placed a prominent position in strengthening the overall leadership of the Party, written the leadership of the Party into the Articles of Incorporation, and strictly regulated the working rules of the Party Committee to establish the importance of the Party's leadership and Party building in the corporate governance. On the occasion of the centenary of the founding of the Party, we launched a joint party building campaign with the themes of "I do practical work for the public", "Think, do together for better or for worse", etc. We have been also working on the theme of Building New Strength, "Study the Party's history, Understand its theories, Do practical work and Make new advances" to deeply integrate Party building with business and lead business development with Party building. In the year of 2021, the Party building work of our bank achieved significant results. The Party Committee of the Head Office was awarded as "Suzhou Advanced Base-Level Party Organization". Three Base-Level Party organizations of the Head Office were awarded as Advanced Grass-roots Party Organizations of the Provincial Federation, two Base-Level Party organizations were awarded as Advanced Base-Level Party Organizations of Changshu City, and the Secretary of the Party Committee Zhuang Guangqiang was awarded as "Advanced Individual of Jiangsu Province for Rural Revitalization" by Jiangsu Provincial Party Committee and Provincial Government, and "Communist Party Member of the New Era" by Changshu City. Our Exhibition Pavilion "A Hundred Years of Golden Years, Feiyan Building Dreams" was selected as the activity point of the New Era Civilization Practice in Changshu City. 予熱送 常熟市“党建引 金融商民 助力乡村振兴。 "Party-Led Development, Financial Benefit to the People, Helping Rural Revitalization" Special Event
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