RISK GOVERNANCE The Group’s risk governance provides a formal transparent and effective governance structure that promotes the active involvement of the Board and Senior Management in the risk management process to ensure a uniform view of risks across the Group. The following Risk Committees are in place to facilitate and oversee the implementation of the Risk Management Framework. The Group’s ultimate governing body which plays a critical role in ensuring sound and prudent policy and practices in the Group. It provides an effective check and balance mechanism in the overall management of the Group. MANAGEMENT RISK CONTROL COMMITTEE (MRCC) Responsible for: Performing oversight functions to ensure effective risk management of key issues relating to the overall risk management of the Group. BOARD RISK COMMITTEE (BRC) Responsible for: Overseeing the Group’s activities in managing the following risk: • Credit risk • Market & Liquidity Risk • Non-Financial Risk • Legal Risk • Regulatory and Compliance Risk • Shariah NonCompliance Risk • Technology and Cyber Risk • Business Continuity Risk • Sustainability risk (including climaterelated risk) • Any other relevant risks BOARD FINANCING REVIEW COMMITTEE (BFRC) Responsible for: Reviewing all investment and financing/credit related proposals above specified limits. FINANCING COMMITTEES Responsible for: Reviewing, assessing/ approving credits and investment/capital market proposals. ASSET & LIABILITY MANAGEMENT COMMITTEE (ALCO) Responsible for: Overseeing and deliberating key issues relating to Group’s asset and liability management and market risk. BUSINESS CONTINUITY MANAGEMENT COMMITTEE (BCMC) Responsible for: Overseeing the execution of BCMrelated activities to ensure BCM initiatives, plans and programs adhere to Group BCM Policy and BNM BCM Policy. OPERATIONAL RISK CONTROL COMMITTEE (ORCC) Responsible for: Facilitating MRCC in the management of key issues on non-financial risk. RECOVERY MANAGEMENT COMMITTEE (RMC) Responsible for: Overseeing recovery issues and related operational strategies on recovery. DATA MANAGEMENT COMMITTEE (DMC) Responsible for: Overseeing the enforcement of the framework, policies and standards for data governance and management to safeguard the integrity, security, privacy, and quality of data throughout its lifecycle. CLIMATE RISK COMMITTEE (CRC) Responsible for: Overseeing the management of climate related risks, including development of tools and methodologies for risk identification, quantification, management, monitoring and reporting, and building climate-related risk capacity. BOARD OF DIRECTORS BOARD OF COMMITTEES MANAGEMENT COMMITTEES Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 246 Statement on Risk Management and Internal Control
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