BIMB Integrated Annual Report 2019

148 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance • Deliberated on the initiatives to mitigate the deterioration in General Takaful Fund of Syarikat Takaful Malaysia Am Berhad; • Deliberated on the implementation of National Anti-Corruption Plan (NACP) in line with Section 17A of Malaysian Anti-Corruption Commission Act 2009; • 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 risk of key operating subsidiaries; and • Oversaw the functions of the Group Management Risk Committee. Group Risk Management Committee The BRC is supported by the Group Risk Management Committee (“ GRMC ”) which is chaired by the Chief Risk Officer of Bank Islam. The other members of the GRMC are the Group Chief Financial Officer, Chief Risk Officer and the Chief Compliance Officer of each key operating subsidiaries as well as the Chief Economist of Bank Islam and BIMB Securities. The GRMC assists the BRC to effectively manage the key risk areas of the Company and Group and to ensure that an appropriate risk management system and internal controls are in place and functioning effectively. The GRMC is responsible for: • developing and co-ordinating the Company’s risk management framework within the Group on an on-going basis; • consolidating, assessing and reporting risk information from across the Group; and • ensuring the implementation of the risk management process across the Group. The Company risk management process is a step-by-step process as follows: Step 1 Risk Assessment Step 2 Risk TREATment Risk Identification Risk Analysis Risk Evaluation During the year under review, the GRMC met six (6) times. The GRMC collates and reports to the BRC the risk associated to the subsidiaries. The risks include credit risk, market risk and operational risk. Emerging issues and compliance risks are also deliberated in the GRMC meetings and further action is taken by the relevant key operating subsidiaries prior reporting the same to the BRC. Performance Review of the BRC The BRC continues to diligently exercise its risk oversight responsibilities by ensuring that risk management is an integral part of strategic planning and decision-making for the achievement of the Group’s strategic and long-term objectives. Based on the Board Evaluation 2019, the Board is satisfied with the performance of the BRC and its members and that it has discharged its responsibilities in accordance with its mandate and Terms of Reference. Corporate Governance Overview Statement (Pursuant to Paragraph 15.25 (1) of the MMLR of Bursa Securities)