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EXIM BANK MALAYSIA ANNUAL REPORT 2024
6 UPHOLDING ACCOUNTABILITY 81
STATEMENT OF RISK MANAGEMENT
RISK MANAGEMENT FRAMEWORK OVERVIEW
The Bank’s risk management strategy has evolved over the years to support the Bank’s risk related decision-making while
balancing the appropriate level of risk taken to the desired level of rewards.
The Bank has implemented an effective risk management framework which identifies, assesses and manage various type of
risks that could impact our business objectives. Our risk management framework is designed to enable proactive identification
of potential risks primarily the enterprise risk categories, risk governance and the development of strategies to mitigate them
through broad risk management approaches and specific risk management tools.
The Bank has a dedicated risk management function to manage risks through the process of identifying, measuring, monitoring
and controlling the primary enterprise risk categories as well as timely reporting and update of action plans on the risk findings.
These are governed by a structured risk governance mechanism consisting of strong Board and Management oversight roles
and responsibilities.
Our risk management framework is integrated into our business processes and culture, and it is reviewed and updated regularly
as reflected through the regular review of other risk related frameworks, policies, procedures and manuals to support risk related
decision-making; and to ensure that the Bank is able to provide swift and appropriate response to any internal as well as external
changes which will have an impact on the Bank’s operating environment.
Our risk management framework involves the following steps:
a. Establishment and review of the risk appetite approved by the Board.
b. Formulation of risk limits covering all relevant and material risks.
c. Establishment of effective risk identification, assessment, monitoring, mitigation and reporting processes.
d. Development of risk methodology and models supported by a robust model validation process.
The risk management function is regularly assessed to provide assurance on the Bank’s compliance to the applicable laws,
regulations, internal policies, procedures and limits.
RISK MANAGEMENT STRATEGIES
The following principles underpin the Bank’s risk management strategies:
Principle Details
Principle 1 a. The Bank shall clearly define the roles and responsibilities of parties involved in the entire
Clear responsibilities risk management processes.
on risk management b. The Board has the ultimate responsibility for identifying the Bank’s risks and ensuring that
they are effectively managed. The Board Risk Committee is tasked to assist the Board in
carrying out this responsibility.
c. The Senior Management will oversee managing the Bank’s day-to-day risk management.
Principle 2 The Bank shall integrate risk management into its existing strategic management and
Risk management shall operational process, as risk management is an important component of robust decision
be incorporated into all making.
decision-making processes
Principle 3 All material risks to which the Bank is exposed to must be thoroughly analysed based on
Comprehensive assessment the consistent application of the following processes: risk identification, risk measurement,
of risks for all activities and risk evaluation.
