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STATEMENT ON RISK MANAGEMENT AND

INTERNAL CONTROL

kEY INTERNAL CONTROL STRUCTURE

The Board has established the following key processes to review the adequacy and effectiveness of the system of internal
controls, including:

• Risk Management Framework
INTEGRATED ANNUAL REPORT 2020 and accountability in association with the Group’s business and operational requirements in order to maintain a sound
The Board has established an organisational structure and charter with clearly defined lines of responsibility, authority limits
control environment. The organisational structure is as follows:

SHARIAH
BOARD OF DIRECTORS
SUPERvISORY

152

BRC GMC BAEC
BIMB HOLDINGS BERHAD 199701008362 (423858-X) GRMC INTERNAL AUDIT & ExTERNAL AUDIT COMPLIANCE

SHARIAH AUDIT

Risk management is considered an integral part of
key operating subsidiaries, namely Bank Islam and Takaful
the Group’s day-to-day operations to facilitate BHB in In addition to the risk management framework, the Group’s
achieving its objectives and to protect its shareholders and Malaysia have implemented the Internal Capital Adequacy
stakeholders’ interest. Risk management is embedded in Assessment Process (“ICAAP”) framework to ensure that the
the Group’s key processes and monitored through a Risk Group maintains adequate capital levels consistent with the
Management Dashboard (“RMD”) report. The Group’s key risk profiles including capital buffers to support the Group’s
operating subsidiaries report their risks via the RMD at their current and projected demand for capital under existing and
BRC six (6) times a year. BIMB Securities reports its risks via stressed conditions.
the RMD at its BARC on quarterly basis.
Each key operating subsidiary has appointed its own qualified
The Group’s risk management framework is in place risk officer who is responsible for monitoring, assessing and
to ensure that there is an effective on-going process in managing the risks associated with its business and operations.
place to manage risk across the Group. This process is The RMD of each subsidiary is tabled at the GRMC, and where
regularly reviewed by the Board through the BRC which relevant, subsequently tabled at BHB’s BRC.
provides oversight over the risk management activities for
the Group. The BRC also assists the Board to review the The BRC or the BAEC/BARC (as the case may be) of the key
Group’s overall risk management philosophy, frameworks, operating subsidiaries will update their respective Boards on any
policies and models. In discharging its overall duties and new regulatory or statutory requirement that could impact the
responsibilities, the BRC is supported by the GRMC which internal control and the risk management principles, policies,
monitors and evaluates the effectiveness of the Group’s risk procedures and practices of the Companies and its subsidiaries.
management system on an on-going basis.