Page 84 - EXIM-Bank_Annual-Report-2023

EXIM BANK MALAYSIA
82 A Vision to Serve Empowering Growth Management Discussion and Analysis
ANNUAL REPORT 2023
STATEMENT OF RISK MANAGEMENT

Principle Details

Principle 4 Frameworks, guidelines, procedures and risk limits are examples of risk control mechanisms.
Effective risk control They are aimed, among others, to ensure that each risk has a proper mitigation method and
mechanism 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
Adequate system for implemented.
monitoring and reporting b. The Bank’s risk profiles, as well as any substantial risk issues, must be communicated 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
Effective internal control review system, which includes independent evaluation and, when needed, the involvement of
review 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, 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 approval, as well related to loan/financing, which have been recommended by
as reviewing the risk reports and assessment that have been the Management Credit Committee (MCC).
deliberated at Management Risk and Compliance Committee
(MRCC), Assets and Liabilities Committee (ALCO) and
Information Technology Steering Committee (ITSC).