Page 73 - EXIM_AR2021

ANNUAL REPORT 2021 71

Principle Details
Principle 4 Effective risk control Frameworks, guidelines, procedures, and risk limits are examples of risk
mechanism control mechanisms. They are aimed, among others, to ensure that each risk
has a proper mitigation method and measurement, as well as being efficiently
and effectively applied.
Principle 5 Adequate system for a. The Bank is responsible for ensuring that the monitoring and reporting
monitoring and reporting systems are properly implemented.
b. The Bank’s risk profiles, as well as any substantial risk issues, must be
communicated on a regular basis to the Board and Senior Management.
Principle 6 Effective internal control As part of its risk management approaches, the Bank must develop an effective
review internal control review system, which includes independent evaluation and,
when needed, the involvement of internal or external audits.

RISK GOVERNANCE AND OVERSIGHT

The Bank’s Risk Management Framework establishes a structure for risk strategy development, approval, and overall risk
management governance that is suited to the nature, scale, and complexity of the Bank’s business activities and operations.
The Bank’s organisational structure supports the Bank’s risk management culture to ensure uniform view of risk Bank-wide.

The following characteristics must be included in the Bank’s risk management organisation structure:
a. The Board and Senior Management have clear role and responsibilities in managing the Bank’s risks.
b. Roles and responsibilities of various committees and Senior Management that support the Bank’s risk management initiatives
are clearly defined.
c. An independent risk management function with adequate authority, resources, and access to the Board that can provide an
independent assessment of the Bank’s risk positions.
d. A strong risk management culture manifested by a shared understanding of risks at all levels of the organisation, as well as
business and activity decisions that are consistent with the Bank’s risk management strategy and risk appetite.
The Bank’s overall risk governance structure as detailed below:

Board of Directors (Board)

The ultimate governing body, responsible for overall risk oversight and setting the appropriate
governance structure and risk appetite.

Shariah Committee (SC)

Responsible for ensuring that the Bank’s Islamic banking and takaful business activities adhere to
Shariah principles and rules.

Board Risk Committee

Board Risk Committee (BRC) Board Credit Committee (BCC)
Responsible to review the risk management framework, key Responsible to review and approve the credit papers related
risk policies, and risk appetite for Board approval, as well to loan/financing which have been recommended by the
as reviewing the risk reports which have been deliberated at Management Credit Committee (MCC).
Management Audit, Risk and Compliance Committee [MARCC]
and Assets and Liabilities Committee (ALCO).