Enhancing our regular internal risk reporting so that our senior management and Board are getting the right information and a balance between historical and forward- looking perspectives. Putting customers at the heart of risk management The continued execution of our program remains a priority in driving the ‘Customer simplification of risk processes and policies in order to benefit our customers and people. The program aims to: Empower our bankers. Reduce time to decision. Recognise customers. Use digital technology and data analytics to drive innovation and better customer service. Key improvements made in 2017 include: Removing bottlenecks in the lending process, reducing the time our customers wait for a decision and funds (where approved) from their application. Simplifying the onboarding process for our small to medium business customers. Managing regulatory change We, and the financial services industry, continue to experience a heightened level of regulatory scrutiny and resultant change that is unlikely to lessen in the near future. Our focus is on early engagement with key regulators in order to understand, shape and prepare for regulatory reform. This helps manage the impact of change on our customers, people and shareholders. ESG risk management Our Environmental, Social and Governance (ESG) Risk Principles provide an overarching framework for integrating ESG risk considerations into our day-to-day decision making. They are aligned to our values and vision. ESG risk is not managed as a separate risk category but is integrated across our material risks. ESG performance NAB considers ESG risk in the assessment of potential and existing business relationships – particularly in credit risk and procurement risk assessment and due diligence processes. ESG risk data, information and insights help inform our risk appetite. Key ESG risk management achievements this year include: Incorporating an ESG risk screen into a new fast-track SME business loan product. Issuing Australia’s first Social Bond to promote workplace gender equality, and arranging Australia’s first Sustainability Bond. Updating our Human Rights Policy and Code of Conduct. Updating our Group Supplier Sustainability Principles in order to strengthen labour rights and modern slavery requirements. Including Modern Slavery as part of our annual risk awareness training for employees across the Group and rolling out ESG risk refresher training for business bankers.
Enhancing our regular internal risk reporting so that our senior management and Board are getting the right information and a balance between historical and forward- looking perspectives. Putting customers at the heart of risk management The continued execution of our ‘Customer program remains a priority in driving the simplification of risk processes and policies in order to benefit our customers and people. The program aims to: Empower our bankers. Reduce time to decision. Recognise customers. Use digital technology and data analytics to drive innovation and better customer service. Key improvements made in 2017 include: Removing bottlenecks in the lending process, reducing the time our customers wait for a decision and funds (where approved) from their application. Simplifying the onboarding process for our small to medium business customers. Managing regulatory change We, and the financial services industry, continue to experience a heightened level of regulatory scrutiny and resultant change that is unlikely to lessen in the near future. Our focus is on early engagement with key regulators in order to understand, shape and prepare for regulatory reform. This helps manage the impact of change on our customers, people and shareholders. ESG risk management Our Environmental, Social and Governance (ESG) Risk Principles provide an overarching framework for integrating ESG risk considerations into our day-to-day decision making. They are aligned to our values and vision. ESG risk is not managed as a separate risk category but is integrated across our material risks. ESG performance NAB considers ESG risk in the assessment of potential and existing business relationships – particularly in credit risk and procurement risk assessment and due diligence processes. ESG risk data, information and insights help inform our risk appetite. Key ESG risk management achievements this year include: Incorporating an ESG risk screen into a new fast-track SME business loan product. Issuing Australia’s first Social Bond to promote workplace gender equality, and arranging Australia’s first Sustainability Bond. Updating our Human Rights Policy and Code of Conduct. Updating our Group Supplier Sustainability Principles in order to strengthen labour rights and modern slavery requirements. Including Modern Slavery as part of our annual risk awareness training for employees across the Group and rolling out ESG risk refresher training for business bankers.