Page 93 - Exim iar24_Ebook

EXIM BANK MALAYSIA ANNUAL REPORT 2024

6 UPHOLDING ACCOUNTABILITY 91

5. New Policy on Cloud Risk Management

Cloud computing is a service and delivery model that enables on-demand network access to a shared pool of computing
resources i.e., servers, storage, and services. Over the recent years leading up to the COVID-19 pandemic, more and more
entities including financial institutions are moving their traditional on-premises resources to the cloud for better availability
and streamlining of resources.
This document provides guidelines for the assessment of common key risks and considerations of control measures
when adopt cloud services to strengthen Banks’ cloud risk management capabilities.

6. Review of the Bank’s credit risk related documentations
The Credit Risk Policy (the Policy) provides overarching principles of credit risk management for the Bank’s conventional
and Islamic financing.
The Credit Processes and Procedures (the Procedures) cover the Islamic banking and conventional banking businesses
to complement the Credit Risk Policy governing financing/ lending and explains the detailed workings of the credit policies
and contains prudential procedures to inculcate a risk-aware credit culture.
The Bank has reviewed and enhanced its credit risk policy and procedures for effective implementation across the organisation
and incorporated the climate-related risk elements.

7. Review of Takaful/Insurance related policies
The Policy on Credit Takaful/Insurance (the Policy) serve as a system of principles and rules in the implementation of the
operations in Takaful/Insurance function in the Bank. The Policy are based on best practice in line with the Takaful/Insurance
principles that are practical, effective and consistent with the Bank’s role as a developmental financial institution.
The Risk Retention Policy address the primary considerations in setting retention include protection of the Bank’s capital,
stabilisation of income and availability sufficient fund to meet large claims.
The Bank has also reviewed the risk appetite of risk retention for year 2024 for risk monitoring and reporting.
8. Review of Policy on Asset Liability Management and Market Risk

In response to the growing importance of environmental sustainability and regulatory requirements, EXIM Bank is committed
to integrating climate-related risk considerations into its market risk management framework.

This outlines the essential components of the Bank’s approach to managing Climate-Related Risk effectively.
The Climate-Related Risk includes potential financial losses from climate change. These risks are divided into Physical Risks,
like damage from extreme weather, and Transition Risks, such as financial impacts from regulatory changes and shifts toward
a low-carbon economy.
9. New Policy on Trade Surveillance

The Policy on Trade Surveillance (Policy) has been developed in accordance with the BNM Code of Conduct for Malaysia
Wholesale Financial Markets and Guidance Document for Wholesale Market Conduct Practices.
The Policy sets a comprehensive framework for monitoring and detecting potential market abuse, insider trading, and other
forms of misconduct related to trading activities.
The Policy also address the risk identification and surveillance, internal controls and culture as well as the roles and
responsibility.