Page 138 - Bank-Muamalat-Annual-Report-2021

136 BANK MUAMALAT MALAYSIA BERHAD
ABOUT US OUR LEADERSHIP OUR STRATEGY OUR PERFORMANCE

EFFECTIVE AUDIT AND
RISK MANAGEMENT

INTERNAL CONTROL AND RISK MANAGEMENT The composition of the BRMC is in line with Paragraph
12.3 (c) of BNM CG, which requires that the position of the
Board Risk Management Committee BRMC Chairman be held by an Independent Director of Bank
Muamalat.
Roles
The Board has delegated to the BRMC the responsibility of
Responsible to oversee Management’s activities in managing overseeing the effectiveness, adequacy and integrity of the
all risks namely credit, market, liquidity, operational, legal and risk management framework and policies of Bank Muamalat
other risks, and to ensure that the risk management process and ensuring that significant risks faced by Bank Muamalat are
is in place and functioning. The BRMC is assisted by the Chief
being managed appropriately to respond to changes in the
Executive Officer, Chief Risk Officer, and Chief Compliance
business environment. In addition, BRMC is also responsible
Officer who also attend the meeting as permanent invitees.
for overseeing business continuity management of Bank
Focus Areas Muamalat.
The BRMC focuses on the following:
The Statement on Risk Management and Internal Control
• Review the risk management report covering provides an overview of Bank Muamalat’s risk management
market risk, credit risk, operational risk and Shariah and internal control framework as well as the adequacy and
non-compliance risk and emerging risk report
effectiveness of the framework.
• Review compliance report covering Anti-Money Laundering/
Counter Financing of Terrorism AML/CFT, regulatory Board Compliance Committee
compliance and update on new policies and regulations.
• Review and recommend to the Board the risk appetite setting Roles
for the Bank to ensure it is in line with the corporate strategy
and direction. • To provide oversight and advice to the Board of Directors and
• Review and recommend to the Board the stress test scenario Management in respect of the management of compliance
and its methodology. risk, including AML/CFT, bribery and corruption.
• Review the implementation of the Internal Capital Adequacy • To evaluate the adequacy and effectiveness of the Bank’s
Assessment Process (“ICAAP”) for the Bank. overall management of compliance risk (such as infrastructure,
resources and systems), having regard to the assessment
• Review and deliberate new product/services and product
programmes proposed by the business units to ensure it is in of senior management and internal audit as well as the
line with the target risk profile and risk acceptance criteria for Regulatory Advisory and Compliance Division and recommend
the Bank. improvement needed to the Board;
• To review and assess compliance and AML/CFT emerging
• Review and deliberate significant business and operating risk-
related policies of the Bank. concerns.

Further details can be found on page 127 of this Annual Report

INTEGRITY IN CORPORATE REPORTING AND

MEANINGFUL STAKEHOLDER RELATIONSHIPS

COMMUNICATION WITH STAKEHOLDERS GENERAL MEETINGS

Stakeholders play an invaluable role in building the sustainability The Board ensures that shareholders are given sufficient notice
of our business. Bank Muamalat regularly engages formally to consider resolutions that will be discussed and decided at
and informally with both our internal and external stakeholders the General Meetings. The General Meeting notice includes
through various touchpoints. These engagements aid us in details of the resolutions proposed along with any relevant
understanding their expectations and concerns. As a constant information and reports.
and easily accessible touchpoint, the corporate website
provides our staleholders' easy access to comprehensive and Detailed disclosure of the Bank's engagements can be viewed on
updated information about Bank Muamalat. page 42.