BIMB Integrated Annual Report 2019

MANAGEMENT RESPONSIBILITY The Management is accountable for implementing the Board’s policies and procedures on risks and control. Its role includes but is not limited to the following:- At BHB level, the internal control oversight responsibilities are carried out by the following committees: • Board Audit & Examination Committee (“BAEC”) The main responsibility of the BAEC is to assist the Board in assessing the effectiveness of the Company’s internal control systems and overseeing the internal control of the accounting system. This is to ensure that appropriate methods and procedures are in place to attain the level of assurance required by the Board. The BAEC reviews the quarterly reports relating to regulatory developments, compliance and operational deficiencies identified within the Company. The minutes of the BAEC are circulated to the Board for information. The Terms of Reference is available on the Company’s website www.bimbholdings.com • Board Risk Committee (“BRC”) The BRC is responsible for assisting the Board on risk management, overseeing the Management’s activities in managing significant risk areas and ensuring that the risk management framework is in place and functioning effectively. At the Management level, the BRC is supported by the Group Risk Management Committee (“ GRMC ”) to oversee the risk management matters relating to the Group risk management activities. The minutes of the BRC are circulated to the Board for information. The Terms of Reference is available on the Company’s website www.bimbholdings.com In respect of the key operating subsidiaries, in particular Bank Islam Malaysia Berhad (“ Bank Islam ”) and Syarikat Takaful Malaysia Keluarga Berhad (“ Takaful Malaysia ”), the internal control oversight function is carried out by the respective subsidiaries’ BRC. At BIMB Securities Sdn. Bhd. (“ BIMB Securities ”), the risk management and internal control oversight function is carried out by its Board Audit and Risk Committee (“ BARC ”). The risk management control structure and processes in place throughout the Group are reviewed from time to time to cater for the changes in the business environment. BHB’s BAEC and BRC together with the respective BAEC/BRC/BARC at the key operating subsidiaries regularly review and monitor the Management’s approach and actions in addressing key risks at the Company and subsidiary level. It also provides the Board and the Management with the platform to anticipate and manage both the existing and potential risks, taking into consideration changing risk profiles and risk appetites. This process had been in place and continued to be the Group’s practice for the financial year under review and up to the date of approval of this Statement for inclusion in this Integrated Annual Report. In addition to the above, two (2) Management Committees at Group level, namely the Group Management Committee (“ GMC ”) and GRMC, were established to assist the Board. The GMC focuses on the group synergy within the Group whilst the GRMC assists the Board in managing the risk and internal control of the Group. Through these committees, the Management has oversight over the relevant key operating subsidiaries on the following matters: • Identify risks relevant to the business, implementation of strategies and the achievement of its objectives; • Implement regular riskmanagement reporting, monitoring and review as part of its risk management framework; • Identify changes to risks or emerging risks, take actions as appropriate, and promptly bring these to the attention of the Board; • Discuss the tolerance level for each of the operational business and ensuring that they are within the accepted parameters set by the relevant regulatory bodies; • Implement the policies approved by the Board; and • Report in a timely manner to the Board any changes to the risk profile and any corrective action taken. Assurance in relation to the risk management and internal control is also obtained from the key operating subsidiaries confirming that their risk management and internal control is operating adequately and effectively, in all material aspects. Any material risk management and internal control deficiencies will be presented to the respective subsidiaries’ BRC/BAEC/BARC and subsequently to their respective Boards. 155 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary