Page 149 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 147
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

The Bank’s governance structure provides a transparent and effective system that integrates and clearly defines the involvement
of the Board and Management in the risk management process to ensure a uniform view of risk across the Bank. The governance
structure and committees responsible for effective governance and supervision over risk-related functions is as illustrated below:

BOARD OF DIRECTORS (BOD)

• Establish a strong risk management and provides oversight for overall risk governance to ensures that the Bank's strategic
objectives are supported by sound risk strategy and an effective risk management framework

BOARD RISK COMMITTEES

Board Risk Management Committee (BRMC) Board Veto Committee Shariah Committee (SC)
• Ensure effective management of risks and enforcement (VETO) • Serve as advisory to the
of approved risk tolerances and limits. • Review approvals of large Board and Management
• Review and assess the existing risk management financing granted by Credit team on all Shariah matters.
framework for its continued efficacy. Committee (management
level).
• Ensure robust infrastructure and systems as well as
resources are in place to monitor risk and capital
effectively.

EXECUTIVE LEVEL-RISK MANAGEMENT COMMITTEES

Executive Risk Management Committee (ERMC), Asset Liability Management Committee (ALCO), Credit Committee
(CC), Investment Committee (IC), Operational Risk Management Committee (ORMC), Business Continuity Management
Committee (BCMC)
• Undertake the execution and implementation of Bank's strategies, policies and methodologies in line with the Board's vision.
• Identify, evaluate, measure and monitor the strategic and business plans, capital plan and risk appetite statement as per the
Board's approval.

1st Line 2nd Line 3rd Line
(Business Units) (Risk Management Control & Compliance) (Internal Audit)
• Risk are directly undertaken • Ensure independent oversight and management • Provide independent review
and assumed in the day-to-day of all material risks undertaken by the Bank. and assurance on adequacy
business activities and operations. • Provide specialized resources for developing risk of risk management process
• As front-liners, responsible for frameworks, policies, methodologies and tools and effectiveness of the
carrying out the established for risk identification, measurement and control. first two lines of defence in
processes for identifying, mitigating • Provide the control function, which monitors fulfilling their mandates.
and managing risks within their the risk by using various key indicators and
respective environment aligned reports, guided by established risk appetite and
with the Bank's strategic targets. tolerance limits.