Page 294 - Bank Muamalat_AR24

292 BANK MUAMALAT MALAYSIA BERHAD
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2024 (29 JAMADIL AKHIR 1446H)
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
Asset & Liability Committee (“ALCO”)
Credit Committee (“CC”)
Investment Committee (“IC”)
Enterprise Risk Management Committee
(“ERMCo”)
Operational Risk Management Committee
(“ORMC”)
Business Continuity Management
Committee (“BCMC”)
Asset Quality Impairment Committee
(“AQIC”)
Model Validation Committee (“MVAC”)
Credit Risk Management Committee
(“CRMC”)
Information Technology Steering
Committee (“ITSC”)
To carry out the day-to-day risk management functions, a dedicated Risk Management Department (“RMD”) and
Technology and Cyber Risk Department (“TCRD”) that are independent of profit and volume target, exists to support the
above committees.
Objective
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.
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.
To manage the Bank’s investments and decide on new and/or additional
investment in securities and/or other Treasury investment-related activities.
To manage threats/risk and strategic apportunities that arise from both
internal and external factors and have an impact on the Bank’s strategic
objectives/goals.
To ensure effective implementation of Operational Risk Management
Framework.
To ensure effective implementation of Business Continuity Programme
and endorse Business Continuity Plan.
To deliberate the conduct of Corporate, Commercial and SME account
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.
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.
To ensure financing activities are in line with the Bank’s credit risk
appetite and policies and to deliberate on the effectiveness of the credit
risk mitigation.
To ensure technology and cyber activities are in line with the regulatory
requirements, best practices, the Bank’s Technology Risk Management
framework, Cyber Resilience Framework and risk appetite of technology
and cyber.