Page 94 - Exim iar24_Ebook
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EXIM BANK MALAYSIA
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STATEMENT OF
RISK MANAGEMENT
10. Policy on Operational Risk
The Policy on Operational Risk addressed the requirements of BNM’s Climate Risk Management and Scenario
Analysis (CRMSA) which specified that the impact of climate-related risk events on internal operations must be assessed,
including material outsourcing activities and ability to quickly recover capacity to continue providing critical services at
an optimum level.
The outcome of the assessment, if significant to the critical business functions, must be reflected in the business continuity
plan (BCP) accordingly.
11. Policy on Climate Risk Management
Climate change has the potential to negatively affect EXIM Bank, which could in turn impact the stability of the overall
financial system. This could have broader implications for sustainability of the domestic economic growth.
This Policy on Climate Risk Management (Policy) includes guiding principles for identifying, assessing, monitoring,
mitigating, and reporting of risks associated with climate change and to reflect the BNM’s Policy document requirements on
Climate Risk Management and Scenario Analysis (CRMSA).
This Policy is to ensure the Bank is equipped to effectively manage and adapt to the potential risks and impacts of climate
change, ensuring resilience and promoting sustainable practices in business and operations.
12. Policy on Risk Appetite Policy
The Risk Appetite Policy (The Policy) governs the Bank’s approach to establishing, communicating and monitoring risk
appetite through policies, controls and mechanisms. The Policy also outlines the governance structure for overseeing the
implementation and monitoring of the Bank’s risk appetite.
The Bank’s risk appetite addresses major types of risk taking into account both the willingness and capacity to take on
risk while considering the long-term financial capacity and ability to meeting obligations to stakeholders.
13. Review of Risk Appetite Metrics
To comprehensively manage the Bank’s operating dimensions and the primary enterprise risk categories identified in the
Framework on Risk Management, the Bank is further streamlining its risk appetite metrics in accordance with the Bank’s
Corporate Strategic Plan year 2024.
This will allow for more focused and granular monitoring and reporting of the risk appetite metrics.
