Page 82 - EXIM_AR2021

80 ENHANCING EXIM BANK MALAYSIA
GOVERNANCE

STATEMENT OF

RISK MANAGEMENT

4. Stress Test Methodologies and Analysis

The Bank had conducted the comprehensive stress test covering all the material risks i.e credit risk, market risk, interest
rate risk, operational risk and Shariah non-compliance (SNC) risk. The stress test conducted were forward-looking, covering a
broad range of scenarios capturing foreseeable changes in the Bank’s portfolio composition, new information, developments in
operating conditions and emerging risks which may not necessarily be covered by historical events.

The stress test methodology is guided by the Stress Test Policy document (15 June 2017) and the Industry-Wide Bottom-Up
Stress Test and Sensitivity Analyses Exercise (2020) as well as the supervisory guidance as elaborated in the BNM Composite
Risk Rating (CRR) for the Bank in 2019.
For the stress test, the Risk Management Division has established a Stress Test Working Group (STWG) and conducted the
comprehensive stress test based on the stress test methodologies and parameters that were approved by the Board Risk
Committee in March 2021.

The Board had approved the comprehensive stress test analysis in November 2021.
5. Strengthening the Shariah and Operational Risk Processes and Controls

Implementation of the Group Risk Compliance Solution

The Bank had successfully implemented the automation of Operational Risk Modules i.e., Risk and Control Self-Assessment
(RCSA), Key RIsk Indicator (KRI) and Key Control Testing (KCT) through EXIM Group Risk Compliance Solution (GRC) in April 2021.

It is crucial for the control functions to provide value added input for continuous improvement in existing processes and practices.
Hence, the Shariah and Operational Risk Department continuously conducts self-assessment and risk awareness sharing
sessions among the process and risk owners, which includes the identification, assessment, risk mitigation and monitoring of
the Bank’s SNC risk exposures via Shariah RCSA, KRI & KCT.
EXIM Bank COVID-19 Pandemics and Infectious Disease Management

The Shariah and Operational Risk Department also keeps abreast with updates from the Majlis Keselamatan Negara and
Ministry of Health for COVID-19 pandemics and infectious disease management.
Below are the initiatives undertaken for the COVID-19 pandemic and infectious disease management:

• Arrangements for enhanced information technology infrastructure such as laptop distribution and Virtual Private Network
(VPN) access supporting the environment of “working from home”.

• Extensive usage of video conferencing for meetings and other events through Microsoft Teams.
• Implementation of the flexible working hours in the office premise and rotation schedule to minimise crowded office
environment while ensuring the effective and continuity of critical functions.
• Commencement of the EXIM Bank Vaccination Programme in July 2021 to curb the COVID-19 infections and facilitate faster
vaccination process among staff.
• Other enhancements to the COVID-19 management include:
› Permission for interstate and overseas travel only for fully vaccinated staff
› Staff and visitors screening before entering the Bank’s premises
› Thorough and regular cleaning and disinfection exercise at the workplace and designated areas
› Considerations for split staff work arrangement or activation of the Alternate Work office to maintain the business continuity
during disruption/crisis.