Page 80 - EXIM_AR2021

78 ENHANCING EXIM BANK MALAYSIA
GOVERNANCE

STATEMENT OF

RISK MANAGEMENT

No Primary Enterprise Risk Mitigations
4. Market Risk • Maintain a comprehensive market risk policy and control.
• Proactive monitoring, analysis and reporting by Treasury Middle Office to ensure the market
risk exposure is within the Board approved Risk Appetite.
• All exposures and non-compliances including emerging risks are properly assessed and
escalated to the Management & Board Committees with action plan and monitoring status.
5. Liquidity Risk • Maintain a comprehensive liquidity risk policy and control.
• Proactive monitoring and liquidity risk management to ensure it is within the Board
approved Risk Appetite
• Conduct forward-looking scenario analysis and stress test to identify the areas that
are vulnerable to liquidity risk and mitigate it with right amount of liquidity buffer and
contingency funding plan.
• All exposure and non-compliance including emerging risks are properly assessed and
escalated to the Management & Board Committees with action plan and monitoring status.

6. Technology Risk • Establish adequate internal process and controls, include system backup & recovery.
• Maintain listing of IT-related issues and incidents with close monitoring of rectification
progress by the working level committees, for escalation to the Management and Board
Committees, where relevant.
7. Compliance Risk • Support the Bank’s strategy by establishing clear roles and responsibilities to help embed
good compliance and risk management practices throughout the business to align business
outcome with the risk appetite.
• Integrating a Compliance Risk Management Programme (“CRMP”) into the daily
management of business and strategic planning. The CRMP helps to protect the Bank’s
reputation, lower the cost of capital, reduce costs and helps the Bank to minimise the risk
of investigation, prosecution, and penalties.
• Maintain robust and comprehensive compliance framework, policies and procedures.
• Embedded compliance function through the establishment of the Designated Compliance
and Operational Risk Officer (“DCORO”) functions in every division for active monitoring of
compliance and reporting matters.
• Compliance issues are promptly highlighted and presented for deliberation at the
Management & Board Committees.