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ANNUAL REPORT 2021 81

RISK MANAGEMENT KEY PRIORITIES FOR 2022

1. In 2022, following are the key risk management priorities:

Areas Details
a. Establishment of new Risk Appetite Policy New Policy document that defines the overall governance, types and
aggregate tolerance levels of risk that the Bank is willing to accept in
pursuit of its business objectives arising from the banking and insurance/
takaful activities. This includes communication to the stakeholders,
monitoring and reporting requirements.
b. Enhancement of the Credit Risk Ratings Enhancement to the modelling documentation and governance for the
and MFRS 9 models – post validation Expected Credit Loss computation and models.
c. Comprehensive stress test assessment As the comprehensive stress testing is a continuous process and
assessment, Risk Management Division will strive for continuous
improvement on the stress test exercise moving forward by exploring
potential areas for enhancements as well as establishing linkage between
stress test to other risk tools and measurements such as ICT and risk
appetite metrics.

d. Implementation of the Internal Capital Effective capital management integrated with business plan and stress
Adequacy Assessment Process (ICAAP) test.
e. Review of Credit Risk Policy (CRP) and Further strengthening and improvement of the credit policies and
Credit Processes and Procedures (CP&P) processes with relevant updates to the CRP and the CP&P.

2. Building a strong enterprise wide risk team across Credit Risk, Market and Liquidity Risk, Capital Risk and Shariah and
Operational Risk. This includes:

a. Strengthening the risk governance structure and resolving CRR or regulatory issues
b. Enhancement of the scope for integrated testing and BCM exercises with the relevant and interdependent stakeholders.

c. Embark on the implementation of climate change and risk management practices- establishment of the Bank’s Climate
Change Task Force to kickstart the Bank’s Environmental, Social and Governance framework.

d. Effectiveness of key operational risk controls to mitigate operational and SNC risks across the Bank’s business and
operational functions.