Page 159 - Full Book_24.4.2021

In Retrospect

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The Will to Suceed

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• Risk Appetite • Board Risk Committee (“BRC”)

The BRC, through the Group’s key operating subsidiaries, The Group BRC is kept informed by its subsidiaries of Achieving a Leading Repute
establishes the risk appetite and risk tolerance for the their risk management policy statement and framework
relevant entities. The defined risk appetite and risk including the strategies, policies, the risk tolerance levels,
tolerance are periodically reviewed by the respective governance and reporting structure. |
Management and the respective Boards in line with the
Group’s business strategies and operating environment. At the key operating subsidiaries level, reviews and
Such review includes identifying and setting new risk assessments were carried out on the adequacy of the
appetite metrics for the business entity or removal of risk management policies and framework in identifying,
risk appetite metrics that are no longer applicable and measuring, monitoring and controlling risks and the Paving the Way for a Sustainable Future
updates on the risk appetite thresholds to be in line extent to which these risks are operating effectively.
with the Group’s business strategy and risk posture. In addition, they would also review the adequacy of
The main business and operations inherent risks that relevant policies at the subsidiaries in meeting the
were considered in the risk appetite review include relevant regulatory requirements including capital plan,
regulatory compliance, credit, market and liquidity risk. dividend policy, investment and financing policy, single
customer limit, business continuity plan and etc.
• Board Audit and Examination Committee (“BAEC”)
• Group Management Committee (“GMC”) 153
The BAEC of BHB reviews the adequacy of internal
controls within the Company based on the assessment The primary focus of GMC is to focus on group synergy.
performed by the internal auditors. Similarly, the BAEC The GMC serves as a platform to discuss strategic issues,
of the key operating subsidiaries reviews relevant matters strengthen coordination and create Group synergies
pertaining to its internal accounting controls on quarterly in order to meet the Group’s objectives and create
basis. In addition, the BAEC of BHB and its key operating shareholder value.
subsidiaries also review and assess the adequacy of the
scope and effectiveness of the internal and external audit The Chief Executive Officer of BHB is the Chairman of the Adhering to the Best Governance Practices
functions. The BAEC assesses the independence and the GMC and the members comprise the Group Managing
quality of the external auditors’ resources. Director or CEO of the respective key operating
subsidiaries.
All significant findings by the internal auditors, external
auditors and regulators are reported to the BAEC • Group Risk Management Committee (“GRMC”)
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for review and deliberation. The BAEC reviews and The GRMC has been established to identify and review
ascertains that mitigation plans are implemented by the key risk areas of the Group. It ensures that appropriate
Management to safeguard the interests of the Group risk management systems and internal controls are in place
and upkeep proper governance. The risk responses and and functioning effectively. The GRMC is also responsible
internal controls that the Management has initiated are for assessing the adequacy of infrastructure, resources Laying the Foundation for Financial Growth
documented and recorded in the BAEC meeting minutes. and systems for effective risk management, and where
necessary to embark on the Group’s initiative to share
Pursuant to Paragraph 15.17(f) of the Listing
Requirements of Bursa Malaysia Securities Berhad, facilities and mobilise resources. In addition, the GRMC
two (2) separate meetings with the external auditors reviews the risk management periodic reports presented |
were conducted with the BAEC of BHB without the by the key operating subsidiaries on risk exposure,
presence of the Management, to discuss on any issues risk portfolio composition and risk management activities
relating to the Group during the financial year ended six (6) times a year.
31 December 2020. The GRMC is chaired by the Chief Risk Officer of Bank
Islam. Members consist of the Group Chief Financial Additional Information & Disclosure Summary
Officer, the Chief Economist of Bank Islam and BIMB
Securities as well as the Chief Risk Officer and the Chief
Compliance Officer of the key operating subsidiaries.

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24 th AGM Information