Risk Management

GROUP’S OBJECTIVES

STRATEGIC

High-level goals, aligned with and supporting the Group’s mission

OPERATIONS

Effective and efficient use of resources

REPORTING & COMPLIANCE

Reliability of reporting and compliance with applicable laws and regulations

FINANCIAL

Profitability and sustainability of performance

GROUP’S OBJECTIVES

RISK MANAGEMENT GOVERNANCE

First Line of Defence - Business and Support Units
  • Primary responsibility of identifying, imitigating and managing risks within their lines of business
  • Ensure day-to-day activities are carried out within the established risk and compliance policies, procedures and limits.
Second Line of Defence - Risk Management & Compliance Division (RMD)
  • Independently assess risk exposures and the coordination of risk management on an enterprise-wide basis
  • Ensure that risk management and compliance policies are implemented accordingly
  • Ensure compliance with the applicable laws and regulations
Third Line of Defence - Internal Audit Department (IAD)
  • The IAD being the third line of defence is responsible for independently reviewing the adequacy and effectiveness of risk management processes, system of internal controls and conformity with risk and compliance policies.
RISK MANAGEMENT GOVERNANCE

Key Risks Identified

  • Strategic Risk
  • Credit Risk
  • Market Risk
  • Liquidity Risk
  • Operational Risk
  • Reputational Risk
  • Shariah Non-Compliance Risk

Summary of Activities

In light of the changing business environment, RMD had put in place the following initiatives during the year 2020 to strengthen risk resilience and to support the Group’s objectives:

  • Aligning the Group’s Portfolio to the Risk Appetite and Strategies
  • Enhancing Risk Management Governance, Controls and Processes
  • Strengthening Risk Culture