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EXIM BANK MALAYSIA                                                                               ANNUAL REPORT 2024

             6 UPHOLDING ACCOUNTABILITY                                                                            93










            14.  Policy on Product Management Version 4 (2024)

                This Policy on Product Management (The Policy) sets out the governance of product management in the Bank, within the
                scope  of  the  mandated  roles  in  providing  credit  facilities  to  finance  and  support  exports  and  imports  of  goods,  services,
                and overseas projects with emphasis on non-traditional markets, in addition to providing export credit insurance services,
                export financing insurance, overseas investments insurance and guarantee facilities.
                This Policy further sets out the overall product management and requirements including the responsible parties, the product
                management approval and control of risk associated with the development, offering and marketing of new product as well as
                product variation in the Bank.
            15.  Stress Test Methodologies, Analysis and Documentations

                The Bank conducted comprehensive stress test covering all the material risks i.e credit risk, market risk, interest rate risk,
                operational risk and Shariah non-compliance (SNC) risk periodically as well as the reverse stress testing in accordance with
                the requirements outlined in the BNM’s Policy Document on Stress Testing.

                The stress  test  conducted  covered a  broad range  of scenarios  capturing  foreseeable  changes  in the Bank’s  portfolio
                composition,  new  information,  developments  in  operating  conditions  and  emerging  risks  which  may  not  necessarily  be
                covered by historical events.

                The Bank has updated the Procedures on Stress Testing (Procedures) and incorporated the stress scenario/parameters and
                run-off scenario which can be caused by concerns about the bank’s stability, negative news, or broader economic issues.

            16.  Role of Risk Management in the Bank’s Sustainability Implementation Roadmap
                For smooth implementation  of the Bank’s Sustainability Implementation  Roadmap  and in consultation  with Messrs.
                KPMG as the Bank’s appointed consultant, RMD has established the Climate Risk Working Group (CRWG).

                The  CRWG ensure timely review of RMD’s related  risk documents  in relation  to BNM’s Policy  document  on  Climate Risk
                Management and Scenario Analysis, Climate Change and Principle-based Taxonomy (CCPT) and Climate Risk Stress Test
                (CRST) Methodology Paper.

                This also include review of risk appetite on climate-related risk portfolio.
                Under the Roadmap, CRWG is responsible for the Bank’s CCPT data compilation, streamline of internal processes as well as
                awareness sessions.
                The CRWG also responsible in coordinating the challenge session with internal independent reviewers and CCPT reporting
                to BNM.

                For climate risk stress test, the Bank is to address the BNM’s CRST Methodology Paper requirements which specify further
                details on the applicability of the stress test exercise, the portfolio scope and granularity and the completion timeline.
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