BOARD RESPONSIBILITY The Board affirms its overall responsibility and oversight in establishing a sound risk management and internal control system in the Group as well as reviewing its adequacy, integrity and effectiveness. Such a system is designed to manage the Group’s risk appetite within the established risk tolerance set by the Board and the Management, minimising the risk of failure rather than total elimination of risks to achieve the Group’s business objectives. Acknowledging that the system only provides reasonable and not absolute assurance against the occurrence of any material misstatement, loss or fraud, controls and processes have been put in place to contain the limitations inherent in the system such as human error and potential impact of external events beyond the Management’s control. The Board constantly keeps abreast with developments in areas of risk and governance. The Board is assisted by the Board Risk Committee (BRC) which has been delegated with primary oversight responsibilities on the Group’s risk management and internal control systems. The Board is also supported by the Board Audit & Examination Committee (BAEC) which provides independent oversight of the Group’s reporting process and internal control systems that facilitates appropriate checks and balances within the Group. Periodic summary reports are provided by the Committees to keep the Board informed of their work, key deliberations and decisions on delegated matters. The Board is of the view that the internal control framework that has been instituted throughout BIMB is sufficient to safeguard the shareholder’s investment, customers’ interest and BIMB’s assets. The governance structure established further ensures that there is effective oversight of risks and internal controls in the Group at all levels. The Board remains responsible for the governance of risk and internal control as well as all actions of the Board Committees with regard to the execution of the delegated oversight responsibilities. Reviews are continuously carried out to ensure effectiveness of the system. The Group regularly reviews and improves all controls, processes and response plan arising from the challenges of the economic uncertainties, evolving regulatory landscape, political instability and post COVID-19 pandemic impact as well as other emerging risk that may arise. The Group has established processes to ensure the adequacy and integrity of its internal control system and manage the existing and potential risks with control and governance processes. MANAGEMENT RESPONSIBILITY The Management is accountable to the Board and is overall responsible for the effective implementation of the Board’s policies and procedures on risk management and internal control. This is done by identifying and evaluating the risks faced by the Group and designing, operating and monitoring the risk management and internal control system to mitigate and control risks for consideration by the Board. 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. Accountability Bank Islam Malaysia Berhad 209 01 05 03 07 02 06 09 04 08
RkJQdWJsaXNoZXIy NDgzMzc=