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EXIM BANK MALAYSIA ANNUAL REPORT 2024

6 UPHOLDING ACCOUNTABILITY 95
STATEMENT ON INTERNAL CONTROL

INTERNAL CONTROL

Internal Control is defined as a process, performed by EXIM’s Board of Directors, Senior management, and personnel, designed to
provide reasonable assurance of the achievement of the following objectives:
• The reliability and integrity of information
• Compliance with policies, plans, procedures, laws and regulations and contracts
• The safeguarding of assets
• The economical and efficient use of resources
• The accomplishment of established objectives and goals for operations or plans

The Board recognises the importance of maintaining a sound system of internal control and risk management practices, as well as
good corporate governance. The Board exercises overall responsibility in identifying, evaluating, and reviewing the adequacy and
effectiveness of the Bank’s risk management, governance, and internal control.

The Board recognises that risks cannot be eliminated completely and as such, systems and processes have been put in place
to provide reasonable but not an absolute, assurance against material misstatement of financial information or against losses
and fraud. The Board is of the view that the internal control framework instituted throughout EXIM Bank is sufficient to safeguard
stakeholder’s investments, customer’s interests, and EXIM Bank’s assets. Reviews are continuously carried out by the Bank to
ensure the system and controls which have been put in place are reasonably adequate and effective.

BOARD AUDIT COMMITTEE

The Board Audit Committee (BAC) was established to further strengthen EXIM Bank’s internal audit processes, and therefore,
meets regularly with the objective of assisting the Board in managing the Bank’s multifaceted and inter-related risks in an integrated
and holistic manner.
The key responsibilities which have been established by the Board and that the BAC execute to ensure the integrity of the
systems of the internal controls are as follows:

a) Reviews the adequacy and integrity of EXIM Bank’s internal control systems and management information system, including
systems for compliance with applicable laws, regulations, rules, directives, and guidelines, as identified by the internal auditors,
the external auditors, and regulatory authorities;
b) Reviews the adequacy and comprehensiveness of the internal audit process, scope of audit, competency of the auditors and
the independence of the Internal Audit function. The Audit & Assurance Department (AAD) reports to the BAC, performs regular
reviews of the processes to assess their effectiveness and highlights any significant risks affecting EXIM Bank. The BAC reviews
the internal auditor’s auditable areas and resources annually, via the Annual Audit Plan;
c) Regularly reviews and holds discussions with the Management on actions taken to address lapses in internal control and
issues identified in reports prepared by the internal auditors, external auditors, and regulatory authorities;
d) Reviews all related party transactions, audit and non-audit related fees proposed by the Bank’s external auditors;
e) Reviews the financial statements of the Bank (half-yearly and annually), preliminary results release and any other formal release
relating to its financial performance prior to escalation to the Board for approval to ensure accuracy and appropriateness of the
financial reporting;
f) Reviews the adequacy and effectiveness of the Integrity and Investigation Department (IID) function in ensuring the
implementation of integrity and governance programs, initiatives and activities including the Organisational Anti-Corruption
Plan;
g) Reviews IID’s Annual Plan on the sufficiency as well as efficacy of IID’s role with regard to competency, resources and authority
in carrying out its functions;
h) Review of IID’s investigation reports for recommendation to the Board for approval and ensure necessary corrective and
timely action have been taken by Management;