Page 92 - EXIM_AR2021

90 FINANCIAL EXIM BANK MALAYSIA
STATEMENTS

ShaRIah COmmITTEE’S REPORT

Shariah Risk Management
During the reporting period of 2021, the Bank has been continuously implementing more robust control measures in managing
its Shariah non-compliance (SNC) risk in line with the Bank’s risk appetite strategy and metrics as approved by the Board of
Directors (Board).

For effective Shariah risk management, the EXIM Bank Governance, Risk and Compliance (GRC) System has been on-boarded in
April 2021 to facilitate the Shariah risk profiling exercise which includes the Risk and Control Self-Assessment (RCSA), Key Risk
Indicator (KRI), Key Control Testing (KCT) and Loss Event Database (LED).

To strengthen implementation of the Shariah compliance risk culture, governance, and risk monitoring in the 1st line of defence
as risk taking units, the Designated Compliance and Operational Risk Officers (“DCOROs”) are appointed for managing the
Shariah and operational risk drivers and activities, as well the root causes, controls, impacts and its corresponding inherent risks
including the control effectiveness, residual risks, and mitigation action plans.
Shariah Review & Shariah Audit

In ensuring that the Bank’s Islamic business activities are conducted in conformity with the Shariah rules and in accordance with
the regulatory requirements, the Bank’s Shariah Review has regularly assessed and evaluated the Bank’s business activities,
product features and services offered by the Bank whilst Shariah Audit provides its independent assessment and assurance on
overall compliance of the Bank’s operations, business, affairs, and activities with Shariah.
During the year, the Committee has assessed the work carried out by Shariah review and Shariah audit. Their reports were
deliberated in the Committee meeting, where the findings become the basis for the Committee to form an opinion on its compliance
with Shariah rules and principles, Shariah guidelines and rulings issued by the Shariah Advisory Council of Bank Negara Malaysia as
well as Shariah decisions and resolutions made by the Committee.
Shariah Training and Awareness
During the year, Shariah Management Department in collaboration with Human Capital Management Division organized series
of Knowledge Sharing Session (“KSS”) and training on the following topics in ensuring that the staff are continuously equipped
with Shariah knowledge and awareness in line with SGPD requirements.

i. Foundation of Shariah & Islamic Finance Programme Foundation of Shariah & Islamic Finance Programme
ii. Ta’widh, Ibra’ and Rescheduling and Restructuring for Islamic Financing Facilities
iii. Knowledge Sharing Session: Shariah Non-Compliance Event & Ta’widh
iv. Knowledge Sharing Session: Rescheduling and Restructuring of Islamic Financing Facility
v. Knowledge Sharing Session: Procedures on Takaful Latest Update
vi. Understanding of Rebate (Ibra’) And Recovery According to Shariah Requirements
vii. Computation of Bank’s Sale Price for Islamic Financing Facility