Page 162 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

GOVERNANCE
DISCLOSURE

ii. Risk Management and Internal Controls
The Board, supported by its committees, operates within a framework of prudent and effective controls in the interests of
shareholders, customers and other stakeholders. The Group’s Governance of Risk Management and Internal Controls ensures
the safety and soundness of the Group and its key entities. This is achieved through a robust governance structure designed
to deliver a well-managed business with effective decision-making, good procedures and strong controls.

iii. Board Risk & Compliance Committee (BRCC)

Members Md Khairuddin Hj Arshad
Johari Abdul Muid
Dato’ Ibrahim Taib
Mohd Razlan Mohamed
Roles Responsible to oversee Management’s activities in managing all risks namely credit,
market, liquidity, operational, legal and other risks and to ensure that the risk management
process is in place and functioning. The BRCC is assisted by the PCEO, Chief Risk Officer,
and Chief Compliance Officer who also attend the meeting as permanent invitees.
Focus Areas The BRCC focuses on reviewing and recommending:
• Review the risk management report covering market risk, credit risk, operational risk and Shariah
non-compliance risk and emerging risk report.
• Review compliance report covering Anti-Money Laundering/Counter Financing of Terrorism AML/CFT,
regulatory compliance and update on new policies and regulations.
• Review and recommend to the Board the risk appetite setting for the Bank to ensure it is in line with the
corporate strategy and direction
• Review and recommend to the Board the stress test scenario and its methodology.
• Review the implementation of the Internal Capital Adequacy Assessment Process (ICAAP) for
the Bank.
• Review and deliberate new product/services and product programmes proposed by the business units
to ensure it is in line with the target risk profile and risk acceptance criteria for the Bank.
• Review and deliberate significant business and operating risk-related policies of the Bank.

The composition of the BRCC is in line with Paragraph 12.3 (c) of BNM CG, which requires that the position of the BRCC
Chairman be held by an Independent Director of Bank Muamalat.

The Board has delegated to the BRCC the responsibility of overseeing the effectiveness, adequacy and integrity of
the risk management framework and policies of Bank Muamalat and ensuring that significant risks faced by
Bank Muamalat are being managed appropriately to respond to changes in the business environment. In addition,
BRCC is also responsible for overseeing business continuity management of Bank Muamalat.
Risk Management and Internal Control provides an overview of Bank Muamalat’s risk management and internal control
framework as well as the adequacy and effectiveness of the framework.

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