Prudence in Action: The Risk Philosophy Powering Commercial Bank's Stability

AS banks navigate an environment shaped by economic uncertainty, rapid technological change and evolving regulatory expectations, strong risk management has become a defining factor of long-term stability.

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Commercial Bank Chief Risk Officer Kapila Hettihamu

At Commercial Bank of Ceylon PLC, a disciplined and conservative approach to risk has remained central to the bank’s resilience and performance across economic cycles.

In this interview, Commercial Bank Chief Risk Officer Kapila Hettihamu explains how the bank manages risk across its operations, strengthens asset quality, and balances innovation with prudence. He outlines the governance structures, policies and forward-looking tools that guide risk-taking decisions, while highlighting the role of the Board and senior management in maintaining a strong risk culture.

A. A conservative risk profile, in our context, does not mean avoiding risk altogether. Banking, by its nature, involves risk. What it does mean is that we are deliberate, well-calibrated, and forward-looking in how we take risk, ensuring that every exposure is aligned with the bank’s strategic objectives, capital strength, and long-term sustainability.

We believe that blending enduring fundamentals with a readiness to adapt guided always by sound business rationale and prudent risk management is the perfect catalyst for our future success.

At Commercial Bank, risk management is embedded into decision-making rather than treated as a back-end control function. We focus on disciplined underwriting, strong portfolio diversification, and proactive monitoring, supported by robust policies and governance structures. This approach has allowed us to remain resilient during periods of economic stress while continuing to support customers and the broader economy. Ultimately, prudence for us is about consistency, resilience, and protecting stakeholder confidence across cycles.