Bank Islam Integrated Annual Report 2020

RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM ěȃlj {ɨɁʍɥԇɰ ƃɥɥɨɁƃƺȃ ɽɁ ȴƃȶƃǼljȴljȶɽ Ɂǹ ɨȈɰȟ Ȉɰ ǼʍȈǁljǁ ƹʰ Ȉɽɰ ĄȈɰȟ ÃƃȶƃǼljȴljȶɽ yɨƃȴljʥɁɨȟӗ ʥȃȈƺȃ ƺɁȶɰȈɰɽɰ Ɂǹ ɽȃlj ǹɁȢȢɁʥȈȶǼ key elements: • ĄȈɰȟ {ɁʤljɨȶƃȶƺljӢ • ĄȈɰȟ ÃƃȶƃǼljȴljȶɽ ĀɨɁƺljɰɰӢ ƃȶǁ • ĄȈɰȟ ɥɥljɽȈɽljӢ • ĄȈɰȟ :ʍȢɽʍɨljӝ Risk Governance ěȃlj ǹɁȢȢɁʥȈȶǼ ĄȈɰȟ :ɁȴȴȈɽɽljljɰ ȃƃʤlj ƹljljȶ ljɰɽƃƹȢȈɰȃljǁ ɽɁ ǹƃƺȈȢȈɽƃɽlj ɽȃlj ȈȴɥȢljȴljȶɽƃɽȈɁȶ Ɂǹ ɽȃlj ĄȈɰȟ ÃƃȶƃǼljȴljȶɽ yɨƃȴljʥɁɨȟӝ BOARD COMMITTEES The Group’s ultimate governing body which plays a critical role in ensuring sound and prudent policy and practices in the Group. It provides an effective check and balance mechanism in the overall management of the Group. BOARD FINANCING REVIEW COMMITTEE (BFRC) BOARD RISK COMMITTEE (BRC) BOARD STRATEGIC REVIEW COMMITTEE (BSRC) Responsible for: • ĄljʤȈljʥȈȶǼ ƃȢȢ Ȉȶʤljɰɽȴljȶɽ ƃȶǁ financing/credit related proposals above specified limits Responsible for: • Overseeing the Group’s activities in managing the following risk: ӵ :ɨljǁȈɽ ĄȈɰȟ ӵ Ãƃɨȟljɽ ծ ¸ȈɧʍȈǁȈɽʰ ĄȈɰȟ ӵ ÝɥljɨƃɽȈɁȶƃȢ ĄȈɰȟ ӵ :ɁȴɥȢȈƃȶƺlj ĄȈɰȟ ӵ Žě ƃȶǁ :ʰƹljɨ ĄȈɰȟ ӵ ȶʰ Ɂɽȃljɨ ɨljȢljʤƃȶɽ ɨȈɰȟɰ Responsible for: • Overseeing, supervising and monitoring the implementation of identified key strategic matters and any corporate exercises BOARD OF DIRECTORS MANAGEMENT COMMITEES Responsible for: • ĀljɨǹɁɨȴȈȶǼ ɽȃlj ɁʤljɨɰȈǼȃɽ ǹʍȶƺɽȈɁȶɰ ɽɁ ljȶɰʍɨlj ljǹǹljƺɽȈʤlj ɨȈɰȟ management of key issues relating to the overall risk management of the Group Responsible for: • Overseeing and deliberating key issues relating to Group’s asset and liability management and market risk Responsible for: • Facilitating ÃĄ:: Ȉȶ ɽȃlj management of key issues on operational risk Responsible for: • Overseeing recovery issues and related operational strategies on recovery Responsible for: • Overseeing Data Management initiatives and establish appropriate action plan to resolve issues on data management OPERATIONAL RISK CONTROL COMMITTEE (ORCC) RECOVERY MANAGEMENT COMMITTEE (RMC) DATA MANAGEMENT COMMITTEE (DMC) ASSET & LIABILITY MANAGEMENT COMMITTEE (ALCO) MANAGEMENT RISK CONTROL COMMITTEE (MRCC) Responsible for: • ɰɰljɰɰȈȶǼӣ approving credits and investment/ capital market proposals FINANCING COMMITEES BUSINESS CONTINUITY MANAGEMENT COMMITTEE (BCMC) Responsible for: • ĄljʤȈljʥȈȶǼ ɽȃlj Group’s BCM issues and making appropriate recommendation BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 163