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ANNUAL REPORT 2021 79

MILESTONE AND ACHIEVEMENTS IN 2021

In line with the Bank’s Corporate Strategic Plan, the Bank is strengthening its risk management practices by promoting good
governance.

The Risk Management Division’s major achievement and implementation in year 2021 are as follows:
1. Enhancement of the Risk Management Framework

The Risk Management Framework (the Framework) is an overarching risk management document for the Bank.
This Framework is developed based on the Bank’s mandated role as a government-owned Development Financial Institution
(DFI) to promote reverse investment and export of strategic sectors such as capital goods, infrastructure projects, shipping,
value added manufactured products and to facilitate the entry of Malaysian companies to new markets, particularly to the
non-traditional markets.
The main purpose of the review of the Framework was to ensure reference and compliance to the Bank Negara Malaysia
requirements updated.
In addition, the Framework provides updated overview of primary enterprise risk categories of the Bank and defines the risk
governance and strategy in mitigating the impact of these risks.
2. Establishment of Fraud Management Policy

The Fraud Management Policy (the Policy) provides a comprehensive fraud definition, identification of the risk areas of
exposures as well as the roles and responsibilities of various stakeholders in managing fraud risk.
The Policy also specify the fraud management approaches from the detection, escalation and reporting, fraud investigation and
mitigation, the recovery of the losses due to fraud event as well as the safekeeping of documentations related to fraud.
The Policy promotes organisational behavior of highest standards and ethics. This Policy also stipulates the governance in
management of fraud, fraud risk and/or fraudulent breach of the code of conduct.
3. Review of Credit Processes and Procedures

The Credit Processes and Procedures (the Procedures) is a procedural document for the implementation of the Risk Management
Framework and the Credit Risk Policy. The Procedures must be complied with in extending credit facilities to borrowers/
customers.

The review and enhancement to the Procedures was approved by the Management Audit, Risk and Compliance Committee
(MARCC) and subsequently endorsed by the Shariah Committee (SC) in August 2021.

The Procedure is a dynamic document and subject to future enhancement of credit practices.