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In Retrospect
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The Will to Suceed
OTHER kEY ELEMENTS OF INTERNAL CONTROL |
Achieving a Leading Repute
The other key elements of the internal control systems are described below:
Board Meetings At a minimum, the Board meets six (6) times a year and has a formal agenda on matters for discussion.
The CEO leads the presentation of board papers and provides explanation on pertinent issues. A thorough
deliberation and discussion by the Board is a prerequisite before arriving at any decision. In addition, |
the Board is kept updated on the Group’s activities and operations on a timely and regular basis.
Group The Board has established an organisational structure with clearly defined lines of responsibility, authority
Organisation limits, and accountability aligned to business and operational requirements which support the maintenance Paving the Way for a Sustainable Future
Structure of a strong control environment.
Limit of Authority The Group has clearly defined lines of authorities to facilitate prompt responses in the continuously
Matrix evolving business environment, effective supervision of day-to-day business conducts and accountability.
The establishment of Limit of Authority (“LoA”) matrix clearly outlines the Board and Management’s limits
and approval authorities across various key processes. The LoA is approved by the Board and is subject to
regular review and enhancement to ensure it reflects changes in accountability and risk appetite of the
Group. 155
Standard Documented Standard Operating Procedures (“SOPs”) for all departments of BHB and its subsidiaries are
Operating approved by the respective Management. The SOPs serves as a day-to-day operational guide to ensure
Procedures compliance with financial and operational controls as well as the applicable laws and regulations. All SOPs are
reviewed and updated regularly to reflect current risks, new regulatory requirements and current operations.
Human Resources The Human Resources policies and procedures of BHB and its subsidiaries encompasses areas of human
Policies and resources management such as the recruitment of new employees based on “fit and proper” criteria, Adhering to the Best Governance Practices
Procedures performance appraisals, training and development.
Annual Business The Group’s budget is prepared based on the annual business plans of BHB’s key operating subsidiaries.
Plan and The budget and business plans are approved by the respective Boards and subsequently endorsed by BHB’s
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Budgeting Board. Actual performances of the subsidiaries are reviewed against the targeted results on a quarterly basis
Process to allow for a timely response and for corrective actions to be taken, thus ensuring that business targets are
met.
The subsidiaries’ performances are assessed against the budget, business plans and relevant key financial
indicators. Laying the Foundation for Financial Growth
Information IT is key in supporting the service efficiency and delivery systems of the Group. The IT Risk Framework was
Technology (“IT”) developed to ensure that risks are correctly identified and mitigated accordingly. Bank Islam and Takaful
System Malaysia have developed their IT policies to address issues of security and risk related to IT. The subsidiaries |
continue to upgrade their IT systems to enhance efficiency of their business operations and services.
Performance The Board receives and reviews Management reports on the Group’s financial and operational performance,
Review risk management as well as legal and regulatory matters on a quarterly basis. The report on financial
performance highlights the key financial indicators, including ratios on profitability, capital adequacy and Additional Information & Disclosure Summary
asset quality.
The actual performance of BHB and its key operating subsidiaries are assessed against approved budgets and
business plans, key financial indicators and industry benchmark. The assessment enables the Management
to identify any significant deviations and gaps for remedial measures to be implemented where necessary.
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24 th AGM Information
