Page 330 - Bank-Muamalat-AR2020

328 BANK MUAMALAT MALAYSIA BERHAD About Us Our Leadership Our Strategy
ANNUAL REPORT FY2020

Notes to the fiNaNcial statemeNts
31 December 2020 (16 JamaDil awal 1442h)

46. FINANCIAL rISk MANAGEMENT OBJECTIvES AND POLICIES (CONT’D.)
(c) Liquidity and funding risk (cont’d.)

(iii) Maturity analysis of financial liabilities on an undiscounted basis (cont’d.)
Bank up to >7 Days - >1-3 >3-6 >6-12 >1 year
7 Days 1 Month Months Months Months Months Total
rM’000 rM’000 rM’000 rM’000 rM’000 rM’000 rM’000
restated

31 December 2019
Non-derivative liabilities
Deposits from customers 8,225,212 4,224,021 3,528,046 1,413,059 1,528,402 136,189 19,054,929
Deposits and placements
of banks and other
financial institutions - 51 142 253 1,017 5,077 6,540
Bills and acceptances payable - - 8,444 - - - 8,444
Leases liabilities - 14,480 - - 37,836 - 52,316
Other liabilities - - 2,803 3,219 5,868 38,826 50,716
Recourse obligation
on financing sold to
Cagamas Berhad - - - - - 507,331 507,331
Subordinated sukuk - - - 7,887 7,250 257,145 272,282
Senior sukuk - - - 16,515 13,750 527,252 557,517
Derivative liabilities 1,537 8,451 2,106 11,359 916 53,177 77,546
Total financial liabilities 8,226,749 4,247,003 3,541,541 1,452,292 1,595,039 1,524,997 20,587,621

(d) Operational risk
Operational risk is defined as the risk of losses resulting from inadequate or failed internal processes and systems, human
factors, and/or from various external events. The objective of operational risk management (“ORM”) is to effectively
manage these risks to minimize possible financial losses arising from operational lapses. In relation to ORM, the key risk
organs which play a critical role in the overall integrated risk management framework are the ORM unit, Operational Risk
Management Committee (“ORMC”), Internal Audit, Compliance, and the business lines.
The operational risk management processes include establishment of system of internal controls, identification and
assessment of operational risk inherent in new and existing products, processes and systems, regular disaster recovery
and business continuity planning and simulations, self-compliance audit, and operational risk incident reporting and
data collection.