Page 148 - Bank-Muamalat-Annual-Report-2021

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

STATEMENT ON RISK MANAGEMENT AND

INTERNAL CONTROL

BOARD RESPONSIBILITY iii. Formulating relevant policies and procedures to manage
these risks in accordance with the Bank’s strategic vision
The Board is committed to its overall responsibility in and overall risk appetite; and
implementing and ensuring a sound risk management and
internal control system in the Bank. The Board’s responsibility iv. Reporting in a timely manner to the Board on any changes
includes reviewing the adequacy and effectiveness of the to the risks or emerging risks and the appropriate actions
risk management and internal control system in identifying, taken.
assessing, monitoring and mitigating the risk.
RISK MANAGEMENT FRAMEWORK
The Board plays a vital role in providing risk oversight and
determining the Bank’s risk appetite to ensuring alignment
The Bank has implemented the Risk Management Framework
with the Bank's strategic objectives. The Board has ensured
(RMF) to guide and streamline its risk management approaches.
the establishment of key processes for reviewing the
The Risk Management Framework provides the overarching
effectiveness, adequacy and integrity of the Bank’s system of
framework that consolidates and streamlines risk management
risk management and internal controls.
practices for all risks across the Bank.
The control structure and process for financial, operational,
The Risk Management Framework governs the way the Bank
risk management and compliance elements which have been
identifies and manages risks, which is aimed at supporting
instituted throughout the Bank and its subsidiaries are updated
the business in embedding effective risk management in its
and reviewed from time to time to suit the changes in the
functions and nurturing a strong risk management culture.
business environment.
RISK GOVERNANCE
MANAGEMENT RESPONSIBILITY
The Bank’s risk governance and oversight structure outlines
The Management is responsible for implementing all policies
the accountabilities as well as roles and responsibilities for
and procedures established by the Board as well as identifying,
the management of risk. The Board plays a crucial role in
evaluating, measuring and monitoring of risk exposures.
establishing a strong risk management structure and provides
The role of the Management includes:
oversight for overall risk governance to ensure that the Bank’s
strategic objectives are supported by sound risk strategy and
i. Identifying and evaluating the risks relevant to the Bank’s
an effective risk management framework. To carry out its risk
business and achievement of its business objectives and
and control oversight, the Board is supported by the Board
strategies;
Risk Management Committee ("BRMC") and Board Veto
ii. Designing and implementing the risk management Committee ("BVC") to oversee matters relating to risk.
framework in accordance with the Bank’s strategies and risk The BRMC updates the Board on monthly basis of their key
appetite; deliberations and decision.