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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.