Our non-resident Board of Directors is responsible for the direction of the Bank’s general operations, exercising all powers delegated to it by the Board of Governors. This includes approving the Bank’s strategy, annual plan and budget; establishing policies; taking decisions concerning Bank operations; and supervising management and operation of the Bank and establishing an oversight mechanism.

Committees of the Board

There are four Committees under the Board of Directors - the Audit and Risk Committee (ARC), the Budget and Human Resources Committee (BHRC), the Policy and Strategy Committee (PSC) and the Ethics Committee. The BHRC, the Ethics Committee and the PSC comprise six directors each. The ARC comprises four directors and two external members. The membership of the Ethics Committee is co-extensive with that of the BHRC. The Directors are appointed for a term of two years. The external members of the ARC are appointed for a term of three years.

Audit and Risk Committee

The responsibilities of the Audit and Risk Committee are as follows:

  • Review AIIB’s financial statements and accounting, auditing and financial reporting practices, procedures and issues.
  • Review the selection procedures for and the qualification and performance of the external auditors; review the reports from the external auditors and ensure appropriate action be taken in respect of major improvement areas identified.
  • Review the scope of work and internal audit plan and the effectiveness of the internal audit function.
  • Review the effectiveness of internal control system.
  • Review AIIB’s financial and risk-related policies; annually review the Bank’s risk management framework and its risk appetite statement.
  • Receive reports on violations of the Prohibited Practices Policy (PPP) from the Managing Director of the Complaints-resolution, Evaluation and Integrity Unit (CEIU).

Committee Members

Relevant Documents

Budget and Human Resources Committee

The responsibilities of the Budget and Human Resources Committee are as follows:

  • Review the proposed annual administrative budget, taking into account the annual business plan, review the quarterly budget execution update, and report thereon to the Board.
  • Review and assess the implementation of the staffing strategies, the compensation and benefits policies and related issues periodically and make recommendations to the Board as appropriate.
  • Review the human resources update report semi-annually.
  • Undertake the functions of the Committee provided for under the Code of Conduct for Board Officials.
  • Receive the summary of the Administrative Review Decision generated as part of Staff Rule 8.01.
  • Consider any other aspects of the annual administrative budget and the Bank’s human resources as the Board may request and report thereon to the Board.
  • Receive briefings on significant actions proposed by the President under the terms of the Policy on Compensation and Benefits, prior to their implementation.

Committee Members

Policy and Strategy Committee

The responsibilities for the Policy and Strategy Committee are as follows:

  • Review AIIB’s operational policies (other than financial and risk-related policies), including but not limited to the environment, social and procurement policies, and report thereon to the Board.
  • Advise on the development of AIIB’s strategies and report thereon to the Board.
  • Review the proposed annual business plan, taking into account the annual administrative budget, and report thereon to the Board.
  • Undertake any other activities consistent with these Terms of Reference as the Board may request and report thereon to the Board.
  • Receive updates on the findings of project evaluations, and requests filed by Project-affected People under the Project-affected People’s Mechanism, as part of the Oversight Mechanism.

Committee Members

Ethics Committee

The responsibilities of the Ethics Committee are as follows:

  • Receive any notice to it from a Board Official that such Board Official has been arrested, charged, or convicted of any criminal offense; the Ethics Committee may consider such notice as equivalent to an allegation of misconduct constituted by a violation of the Code.
  • Receive information from the Chief Ethics Officer as to the resolution of any concerns related to disclosure of financial and business interests of Board Officials or those of their immediate family members, together with any outstanding concerns; the Ethics Committee shall consider and resolve such outstanding concerns.
  • Receive information from a Board Official of a matter unresolved with the Chief Ethics Officer; the Ethics Committee shall consider and resolve such a matter.
  • Receive reports and regularly obtain advice from the Chief Ethics Officer on any matter concerning Board Officials brought to the attention of the Chief Ethics Officer, and on the resolution of such matter.
  • Receive requests for, and may issue, guidance concerning conflicts of interest, annual financial disclosures and other ethical aspects of conduct in respect of Board Officials.
  • Receive and consider allegations of misconduct constituted by a violation of the Code of Conduct for Board Officials.
  • Consider and otherwise resolve all ethical aspects of conduct in respect of Board Officials and make recommendations to the Board of Directors accordingly.

Committee Members