Risk Management

The primary goals of Risk Management are to ensure that the desired outcomes of risk-prone activities are consistent with Company’s strategies and risk appetite, and that there is a healthy balance between risk and reward in order to maximize shareholder value. The Company’s Integrated Risk Management Framework provides the foundation for achieving these goals. Prime Finance has a well-disciplined culture where managing risk is an integral part of the day-to-day operations, having shared responsibilities among employees at all levels.

Integrated Risk Management Framework 

The Company adopts an Integrated Risk Management Framework to manage the business and financial risks. It provides a structured approach for the Company to form a holistic view of all risks and manage them with an integrated approach, in tandem with business and compliance requirements.


Board Integrated Risk Management Committee (BIRMC) ensures that Risk Management strategies, policies, and processes are in place to manage events that could impact Company’s earnings, performance and its reputation. The BIRMC functions under the responsibilities set out in the Board approved Terms of Reference, which incorporates the requirements in terms of Finance Companies (Corporate Governance) Direction No. 03 of 2008 issued by the Central Bank of Sri Lanka (CBSL). BIRMC sets the policies of a wide range including strategic risk, credit risk, market risk, operational risk and liquidity risk.

Risk governance and Organization 

The Company has a well-established Risk and Governance Structure with the guidance of the Board of Directors supported by an experienced Management Team. The Company adopts three (3) lines of defense in managing risks and each line of defense has a clear area of responsibility. The Governance structure encompasses accountability,  responsibility, independence, reporting, communication and transparency both internally and with our relevant external stakeholders.


The employees at all level of the company are bound by this Risk Governance Structure.
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