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CORPORATE GOVERNANCE
OVERVIEW STATEMENT

(PURSUANT TO PARAGRAPH 15.25 (1) OF THE MMLR OF BURSA SECURITIES)

HOW tHe brC OperateS MeetInGS
Risk management plays an integral part During the financial year under review, eight (8) BRC meetings were held. This satisfies
in BHB and the Group’s governance the BRC Terms of Reference, which requires the BRC to meet at least six (6) times a year.
practices. The BRC was established on
26 July 2016 to assist the Board to The BRC meetings are planned ahead for the following financial year. The proposed
manage risk within an established sound schedule of meetings is tabled to the Board and later communicated to the BRC
and robust risk management framework. members. The BRC members are provided with the meeting papers and updates of
INTEGRATED ANNUAL REPORT 2020 process to manage risk across the Group. The Chief Executive Officer, Group Chief Financial Officer, Group Company Secretary,
outstanding matters from the previous meeting or matters discussed at the Group Risk
The Group’s risk management framework
Management Committee meeting prior to the meeting.
is in place to ensure an effective on-going
This process is regularly reviewed by the
Chief Economist, Chief Risk Officer and Chief Compliance Officer of the respective
Board through the BRC which provides
key operating subsidiaries attend BRC meetings. Other attendees, whether internal or
oversight over the risk management
external are invited to present the matters within their purview.
activities for the Group. The BRC also
assists the Board to review the Group’s
overall risk management philosophy, The Group Company Secretary circulated action items from the deliberations and
decisions made from the BRC meetings to the Management and the respective
frameworks, policies and models. stakeholders within seven (7) days after the meetings for their further action.
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The Chairman of the BRC updates the Board on key matters deliberated at the BRC
meetings. In addition, minutes of the BRC meetings are tabled to the Board for
notification. Any members of the Board may enquire or seek clarification on the matters
deliberated by the BRC as recorded in the minutes.
BIMB HOLDINGS BERHAD 199701008362 (423858-X) The BRC activities in the year under review are summarised as below:
tHe brC aCtIvItIeS In 2020

MatterS COnSIDereD

Monitored and discussed the risk reports of the key operating subsidiaries and where appropriate, provided guidance to the
•
management;
•
Reviewed the Statement of Risk Management and Internal Control, which summarises the risk management practices and
•
internal controls implemented by the Management;
• Deliberated the Group’s strategic risks, corresponding key operational risks and key controls taken to manage the risks;
Reviewed the BRC’s overview report;
• Streamlined the risk reporting to facilitate easier monitoring of the risk associated to the key operating subsidiaries;
• Deliberated the Compliance and Risk Management dashboard (market risk, operational risk, credit risk, concentration risk,
liquidity risk, capital adequacy and insurance risk movement), key risk indicator and stress test tabled by the key operating
subsidiaries;
• Discussed on the measures taken by Bank Negara Malaysia to address the impact of the COVID-19 pandemic as well as
measures adopted by the key operating subsidiaries;
• Deliberated on the internal capital adequacy assessment process of key operating subsidiaries;
• Reviewed the compliance reporting in accordance with the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of
Unlawful Activities Act 2001, Islamic Financial Services Act 2013, Personal Data Protection Act 2010 including other regulatory
requirements and Shariah non-compliance, tabled by the key operating subsidiaries;
• Reviewed reports on risk incidents which occurred in the financial year and deliberated the adequacy and effectiveness of
preventive and corrective actions taken;
• Reviewed the risk appetite statement and key emerging risks of key operating subsidiaries;
• Reviewed the findings and observations by the relevant regulatory authorities and the action plan in relation to key operating
subsidiaries; and
• Oversee the functions of the Group Risk Management Committee.