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60 EXIM BANK MALAYSIA
Annual Report 2020

CORPORATE GOVERNANCE DISCLOSURE REPORT

Internal Audit

• Oversee the functions of the internal audit department and • Approve the audit plan for the internal audit and should be
to ensure compliance with BNM/RH/GL013-4 (Guidelines flexible to respond to changing priorities and needs.
on Internal Audit Function of Licensed Institutions), UPW/ • Ensure that adequate and appropriate resources are
GP1 (Standard Guidelines on Anti-Money Laundering and made available to the internal audit function and the
Counter Financing of Terrorism (AML/CFT), BNM/RH/GL- compensation scheme of the internal auditors are
012-3 (Shariah Governance Framework for Islamic Financial consistent with the objectives and demands of the internal
Institutions) and the requirement of the relevant laws and audit function.
regulations of other supervisory authorities.
• Ensure that the continuing professional development for
• Review internal controls, including the scope of the internal audit staff and to ensure that they have sufficient
internal audit programme, the internal audit findings, and up-to-date knowledge of auditing and the activities of the
recommend actions to be taken by Management. The Bank.
reports of the internal auditors and the BAC should not be • Noting significant disagreements between the CIA and the
subject to the clearance of the P/CEO or executive directors.
senior management team in order to identify any impact the
• Approve the Audit Charter before being endorsed by the disagreements may have on the audit process or findings.
Board so that the internal audit function may be effectively
discharged.

Financial Reporting

• Ensure that the accounts are prepared in a timely and accurate manner with frequent reviews of the adequacy of provisions
against contingencies and bad and doubtful debts.
• Review the balance sheet and profit and loss account for submission to the Board and ensure the prompt publication of annual
accounts.

Related Party Transactions

• Review any related party transactions that may arise within EXIM Bank.

BAC held nine (9) meetings during the financial year 31 December 2020. Members of the BAC and details of the meeting
attended by the members are stated on page 56 of this Annual Report.
Board Risk Committee (BRC)

Primarily responsible to support the Board in managing risks as set out in the BNM Policy Document on Risk Governance, the BRC
also oversees the Management’s activities in managing credit risk, market risk, liquidity risk, operational risk, legal risk, Shariah
risk, business risk, compliance/regulatory risk, digital/ICT security risk, reputational risk and other risks and ensures that the risk
management process is in place and functioning.

BRC presently comprises three (3) members, exclusively NEDs and chaired by an Independent Director.