Page 93 - EXIM-Bank_Annual-Report-2023

Management Discussion and Analysis Ensuring Sustainability Commitment to Lead Upholding Accountability Financial Statements 91

6. Review of Insurance/takaful Related Documentations
For Insurance/Takaful related documentations, the Bank has reviewed and enhanced the Risk Retention Policy, the governing
policy document for Insurance/Takaful retention limit management approaches.
The Procedures on Trade Credit Insurance/Takaful (Policy/Certificate) Underwriting is a procedural document for assessment of
Trade Credit Insurance Policy/Takaful Certificate.

7. Policy on Capital Management
The Bank has reviewed the Policy on Capital Management, which governs the basis for capital management planning and
guides in maintaining adequate capital. The review include enhancement on the Internal Capital Target (ICT) methodology,
monitoring and reporting.
8. Policy on Liquidity Risk Management

The Bank has reviewed and enhanced the Policy on Liquidity Risk Management, which include incorporation of the Wholesale
deposit as one of the Bank’s Liability liquidity and its management of risk, including the risk appetite, limit setting and control.

9. Review of Procedures on validation of Internal Rating System and MFRS 9 Models
The Bank has reviewed the Procedures on Validation of Internal Rating System and MFRS 9 Models (the Procedures) and
updated the validation processes, including model monitoring and reporting to the respective Committees.

10. Procedures on Business Continuity Plan (BCP)
The Bank has reviewed the Procedures on Business Continuity Plan (BCP) (the Procedures) for enhancements to the mitigation
strategy through Risk Assessment processes, alerts levels and escalation procedures.

11. Stress test Methodologies, Analysis and Documentations
The Bank conducted 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 periodically as well as the reverse stress testing in accordance with the
requirements outlined in the BNM’s Policy Document on Stress Testing.
The stress test conducted covered 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.