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76 EXIM BANK MALAYSIA
Annual Report 2020

STATEMENT OF
INTERNAL CONTROL

INTERNAL CONTROL
Internal Control is defined as a process, performed by EXIM Bank’s Board of Directors, management and personnel, designed to
provide reasonable assurance towards the achievement of the following objectives:

• The reliability and integrity of information
• Compliance with policies, plans, procedures, laws and regulations and contracts
• The safeguarding of assets
• The economical and efficient use of resources

• The accomplishment of established objectives and goals for operations or plans

The Board recognises the importance of maintaining a sound system of internal control and risk management practices,
as well as good corporate governance. It exercises overall responsibility in identifying, evaluating and reviewing the adequacy
and effectiveness of the Bank’s risk management, governance and internal control. It recognises that risks cannot be
eliminated completely and as such, systems and processes have been put in place to provide reasonable, and if not absolute,
assurance against material misstatement of financial information or against losses and fraud. The Board is of the view that the
internal control framework that has been instituted throughout the Bank is sufficient to safeguard stakeholders’ investments,
customer’s interests and the Bank’s assets. Reviews are continuously carried out by the Bank to ensure effectiveness of
the system.

BOARD AUDIT COMMITTEE
Established to further strengthen EXIM Bank’s internal audit processes, the Board Audit Committee (BAC) meets regularly
with the objective of assisting the Board in managing the Bank’s range of inter-related risks in an integrated manner.
The key processes that the Board has established in reviewing the integrity of the systems of the internal controls
are as follows:
a) The President/Chief Executive Officer (P/CEO) is entrusted with the management of the Bank, where his/her roles,
responsibilities and authority limits are set by the Board. The appointment of P/CEO requires the approval of the Board;
b) Specific responsibilities have been delegated to the relevant Board Committees, based on their respective terms of
references. The Committees have the authority to examine all matters within their scope of responsibility and submit their
recommendations to the Board. The ultimate responsibility for the final decision on all matters, however, lies with the Board.

c) Delegation of authority, including limits at various levels of Management and those requiring the Board’s approval,
are documented and designed to ensure proper accountability.

d) Policies and procedures manual for key processes are documented and regularly reviewed and updated for application
across the Bank.

e) BAC regularly reviews the adequacy and integrity of the Bank’s internal control systems and management information
system, including systems for compliance with applicable laws, regulations, rules, directives and guidelines, as identified
by the internal auditors, external auditor and regulatory authorities. It also reviews the adequacy and comprehensiveness
of the internal audit process, scope of audit, competency of the auditors and the independence of the internal audit function;