Page 78 - EXIM-Bank_Annual-Report-2022

A VISION COMMITMENT EMPOWERING ENSURING ENHANCINg FINANCIAL
76 EXIM BANK MALAYSIA ANNUAL REPORT 2022 TO SERVE TO LEAD GROWTH SUSTAINABILITY gOVERNANCE STATEMENTS 77

STATEMENT OF RISK MANAGEMENT

Principle Details

Principle 4 Frameworks, guidelines, procedures, and risk limits are examples of risk control
mechanisms. They are aimed, among others, to ensure that each risk has a proper mitigation
Effective risk control mechanism
method and measurement, as well as being efficiently and effectively applied.
Principle 5 a. The Bank is responsible for ensuring that the monitoring and reporting systems are
properly implemented.
Adequate system for monitoring b. The Bank’s risk profiles, as well as any substantial risk issues, must be communicated
and reporting
on a regular basis to the Board and Senior Management.

Principle 6 As part of its risk management approaches, the Bank must develop an effective internal control
review system, which includes independent evaluation and, when needed, the involvement
Effective internal control review
of internal or external audits.

RISK gOVERNANCE AND OVERSIgHT

The Bank’s Risk Management Framework provides a comprehensive structure for developing and approving risk strategies,
as well as managing risk governance, that is tailored to the Bank’s business activities and operations, taking into account our
nature, scale and complexity.
To ensure a consistent approach to risk management across the organisation, the Bank’s risk management culture is supported
by its organisational structure. As such the Bank’s risk management culture includes the following characteristic:

a. The Board and Senior Management have clear roles and responsibilities in managing the Bank’s risks.
b. Roles and responsibilities of various committees and Senior Management that support the Bank’s risk management initiatives
are clearly defined.
c. An independent risk management function with adequate authority, resources, and access to the Board that can provide an
independent assessment of the Bank’s risk positions.
d. A strong risk management culture manifested by a shared understanding of risks at all levels of the organisation, as well as
business and activity decisions are consistent with the Bank’s risk management strategy and risk appetite.
The Bank’s overall risk governance structure as detailed below:

Board of Directors (Board)
The ultimate governing body, responsible for overall risk oversight and setting the appropriate
governance structure and risk appetite.

Shariah Committee (SC)
Responsible for ensuring that the Bank’s Islamic banking and takaful business activities
adhere to Shariah principles and rules.

Board Committee

Board Risk Committee (BRC) Board Credit Committee (BCC)
Responsible for reviewing the risk management framework, Responsible for reviewing and approving the credit papers
key risk policies, and risk appetite for Board’s approval, as well related to loan/financing which have been recommended by
as reviewing the risk reports and assessment which have been the Management Credit Committee (MCC).
deliberated at the Management Audit, Risk and Compliance
Committee (MARCC), Assets and Liabilities Committee (ALCO)
and Information Technology Steering Committee (ITSC).