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364 BANK MUAMALAT MALAYSIA BERHAD
ABOUT US OUR LEADERSHIP OUR STRATEGY OUR PERFORMANCE
ABOUT US
OUR PERFORMANCE
OUR STRA
TEGY
OUR LEADERSHIP
BASEL II
PILLAR 3 DISCLOSURE
3.0 rIsK MAnAgeMenT
Overview
Risk is inherent in every aspect of our business activity and to manage this effectively, BMMB has undertaken an integrated
risk management approach to ensure that a broad spectrum of risk types are considered and addressed. The Bank’s
risk management framework and structure are built on formal governance processes that outline responsibilities for risk
management activities, as well as the governance and oversight of these activities.
An integral part of this approach is the systematic process of risk identification and measurement. Appropriate risk
management strategies are then developed in line with the Bank’s business plans and objectives, which include the ongoing
monitoring and control of the identified risk exposures. The management and control over the principal risk areas of
credit, market, asset and liability management, operational and Shariah are integrated to optimise and secure the Bank’s
strategic and competitive advantage.
Risk Governance
The Board of Directors holds the ultimate responsibility for the overall risk governance and oversight. This includes determining
the appropriate risk strategies, setting the Bank’s risk appetite and ensuring that the risks are monitored and controlled
effectively. The Board oversees the risk management of the Bank through a clearly defined governance structure, which
include board and management level committees with distinct roles and responsibilities.
Table 5: risk governance structure
enterprise risk Management (erM) governance Audit committee
Board of Directors
(BoD)
risk related
Board risk
Board committees shariah committee Board Audit committee
Management (sc) (BAc)
committee (BrMc)
executive risk Management Management Audit
risk related committee (MAnco)
Management committees committee (erMc)
risk Division Internal Audit Department
(rD) (IAD)
functional support
