Page 296 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2023 (18 JAMADIL AKHIR 1445H)

47. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)
Risk governance (cont’d.)

There are other risk committees set up at the Management level to oversee specific risk areas and control function of which
the following are the details:

Committee Objective
Asset Liability Committee (“ALCO”) To ensure that all strategies conform to the Bank’s risk
appetite and levels of exposure as determined by the BRCC. These
include areas of capital management, funding and liquidity management
and market risk

Credit Committee (“CC”) To manage the direction of the Bank’s business exposures. These include
authority to decide on new and/or additional exposures and review the
direction of existing exposure

Investment Committee (“IC”) To manage the Bank’s investments and decide on new and/or additional
investment in securities and/or other Treasury investment-related activities

Enterprise Risk Management Committee To manage threats/risk and strategic apportunities that arise from both
(“ERMCo”) internal and external factors and have an impact on the Bank’s strategic
objectives/goals
Operational Risk Management Committee To ensure effective implementation of Operational Risk Management
(“ORMC”) Framework
Business Continuity Management Business Continuity Management Committee (“BCMC”)
Committee (“BCMC”)

Asset Quality Impairment Committee To deliberate the conduct of Corporate, Commercial and SME account
(“AQIC”) and to assess the account’s financial health, adequacy of provision
and accuracy of accounts clasification (Early Care, High Risk or Impaired).
The outcome will be presented to “CC” for approval

Model Validation Committee (MVAC) To challenge the model development and model validation in compliance
with credit risk models, whether internally or externally developed and
validated. The outcome of MVAC will be presented to ERMC and BRCC
for approval
Credit Risk Management Committee To ensure financing activities are in line with the Bank’s credit risk
(CRMC) appetite and policies and to deliberate on the effectiveness of the
credit risk mitigation

To carry out the day-to-day risk management functions, a dedicated Risk Management Department (“RMD”)
that is independent of profit and volume target, exists to support the above committees.

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