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68 EXIM BANK MALAYSIA
Annual Report 2020

STATEMENT OF RISK MANAGEMENT

Adequate systems To ensure that the monitoring and reporting systems are implemented adequately, the
for monitoring and Bank’s risk profiles and any significant risk issues shall be reported to the Board and senior
reporting management on a regular basis.

Effective internal An effective internal control review system shall be established as part of its risk
control review management process, which includes the independent review, and where appropriate, the
involvement of internal or/and external audits.

RISK GOVERNANCE AND OVERSIGHT
EXIM Bank’s Risk Management Framework specifies the structure of strategy setting, approval and overall governance of risk
management in the Bank that is appropriate to the nature, scale and complexity of the business activities.
Furthermore, its organisational structure supports the risk management culture to ensure uniform view of risk bank-wide.

In fact, the Bank’s risk management organisation structure has the following characteristics:
• Clear roles and responsibilities of the Board and Senior Management in managing risks of the Bank;

• Clear roles and responsibilities of various Committees and senior management, which are able to support the Bank’s risk
management initiatives;

• An independent risk management function with sufficient authority, resources and access to the Board and is able to provide
an independent view of the Bank’s risk positions; and
• A strong risk management culture that manifests through the understanding of risks across every level of the organisation and
that decisions on business and activities are in line with the Bank’s risk management strategies and risk appetite.
The Bank’s overall risk governance structure is illustrated below:

Risk Governance Structure:
Board of Directors (Board)

The ultimate governing body with overall risk oversight responsibility, including defining the appropriate governance structure
and risk appetite.
Shariah Committee (SC)

Responsible to ensure that the Islamic banking and takaful business activities of the Bank comply and conform to Shariah rules
and principles.
Board Committee

Board Risk Committee (BRC) Board Credit Committee (BCC)

Responsible to review the risk management framework, Responsible to approve “policy loans/financing” and has veto
key risk policies and risk appetite for approval of the Board, power to challenge, reject credit and modify the terms of
as well as review the risk reports. credits that have been recommended by Management Credit
Committee (MCC).