Bank Islam Integrated Annual Report 2020

BOARD RESPONSIBILITY ě‰K 9Ý ĄA ŽČ :Ý{ÇŽČ Çě Ýy ŽěČ ÝřKĄ ¸¸ ĄKČĀÝÇȎ9Ž¸Žěť ŽÇ KČě 9¸ŽČ‰ŽÇ{ ČÝĩÇA ĄŽČ¶ Ã Ç {KÃKÇě ÇA ŽÇěKĄÇ ¸ :ÝÇěĄÝ¸ ČťČěKà ŽÇ ě‰K {ĄÝĩĀ Č ŚK¸¸ Č ĄKřŽKŚŽÇ{ ŽěČ AKĂĩ :ťӗ ŽÇěK{ĄŽěť ÇA KyyK:ěŽřKÇKČČӝ ě‰K 9Ý ĄA :¶ÇÝŚ¸KA{KČ ě‰ ě ĄŽČ¶Č : ÇÇÝě 9K K¸ŽÃŽÇ ěKA :ÝÃĀ¸KěK¸ť ÇA Č Čĩ:‰ӗ :ÝÇěĄÝ¸Č ÇA ĀĄÝ:KČČKČ ‰ řK 9KKÇ Āĩě ŽÇ Ā¸ :K ěÝ ĀĄÝřŽAK ĄK ČÝÇ 9¸Kӗ ÇA ÇÝě 9ČݸĩěKӗ ČČĩĄ Ç:K { ŽÇČě à ěKĄŽ ¸ ÎČČě ěKÃKÇě Ýy yŽÇ Ç:Ž ¸ ŽÇyÝĄÃ ěŽÝÇ ÝĄ { ŽÇČě Çť ¸ÝČČKČ ÇA yĄ ĩAӝ The Board is of the view that the internal control f ramework that has been instituted throughout Bank Islam is sufficient to safeguard the shareholder’s investment, customers’ interest and Bank Islam’s assets. The governance structure established further ensures that there is effective oversight of risks and internal controls in the Group at all levels where ɽȃlj 9Ɂƃɨǁ Ȉɰ ƃɰɰȈɰɽljǁ ƹʰ ɽȃlj ĄȈɰȟ ÃƃȶƃǼljȴljȶɽ :ɁȴȴȈɽɽljljɰ ƃȶǁ ʍǁȈɽ :ɁȴȴȈɽɽljljӝ ĄljʤȈljʥɰ ƃɨlj ƺɁȶɽȈȶʍɁʍɰȢʰ carried out to ensure effectiveness of the system. The Group has reviewed and improved all controls, processes and response plan arising from the challenges Ɂǹ ɽȃlj :ÝřŽAӸѴѼ ɥƃȶǁljȴȈƺӝ The Group has established processes to ensure the integrity of its internal control system and manage the existing and potent ial r i sks wi th cont rol and governance processes. MANAGEMENT RESPONSIBILITY The Management is accountable to the Board and is responsible for the implementation of the Board’s policies on risk management and internal control by identifying and evaluating the risks faced by the Group for consideration by the Board and ensuring effective controls are put in place to mitigate and manage the risks identified. This includes taking appropriate and timely corrective actions as required. The Management has assured the Board that the Group’s risk management and internal control systems are operating adequately and effectively, in all material aspects, based on the risk management framework and internal control systems adopted by the Group. The Management’s roles include: (a) Monitoring and assessing the overall risk profile of the Group including emerging risks such as credit risk, market risk, liquidity risk, operational risk, Shariah non-compliance risk, r e gu l a t o r y / comp l i an ce r i s k , contagion risk, IT and Cyber risk; ӯƹӰ ĄljʤȈljʥȈȶǼ ƃȶǁ ƃɥɥɨɁʤȈȶǼ ɨljȢljʤƃȶɽ policies and procedures to manage risks in accordance with the Group’s strategic vision and overall risk appetite; (c) Designing, implementing and mo n i t o r i n g t h e e f f e c t i v e implementation of risk management and internal control system; ӯǁӰ ĄljɥɁɨɽȈȶǼ Ȉȶ ƃ ɽȈȴljȢʰ ȴƃȶȶljɨ ɽɁ the Board on any material changes to the risks and the corrective and mitigation actions taken. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK 162 Accountabi l i t y Leadership Financial Statement s