The Caribbean Development Bank (CDB) is delighted to announce that it has achieved a significant milestone in strengthening its risk management with the approval of its new Enterprise Risk Management Framework (ERMF). This achievement comes in the wake of Fitch Ratings’ recent rating action commentary affirming CDB’s AA+ rating with a stable outlook, and recognising the Bank’s resilient loan performance, excellent capitalisation and liquidity, and high governance standards.

One of the key driving factors behind the affirmed AA+ rating is “Risk Management Framework Enhancements: […] The bank has set out a roadmap for reforms spanning capital adequacy, concentration, market, liquidity and operational risks through to 2025”. The approval of the ERMF demonstrates the Bank’s commitment to better align with international best practices, MDB standards, and the requirements of Credit Rating Agencies.

The ERMF also plays a vital role in CDB’s strategy development, budgeting, resource allocation, and cultivation of a robust risk culture. By adopting an integrated and systematic approach, the ERMF enables the Bank to identify, manage, and monitor risks more effectively. Moreover, it aids in aligning risk-taking decisions with CDB’s strategic and developmental objectives, thus maintaining an optimal balance.

With the new ERMF in place, CDB can ensure more comprehensive and accurate risk data and reporting, which is vital for assessing its overall resource needs and mobilising resources efficiently to address the Bank’s priorities.