• Bank Islam Group Pledge for Ethical Excellence Bank Islam Group held the Integrity Pledge on the 10 December 2024, led by the GCEO to demonstrate effort manifesting seriousness and strong commitment to uphold a culture of integrity. Bank Islam Group Pledge for Ethical Excellence (BIG Pledge) was also launched to reinforces the Group’s dedication to instil integrity, promoting ethical standards and ensuring strong corporate governance while exemplifying accountability in combating corruption. • Independent Assurance by the Internal Auditors The Board has established the Internal Audit function to provide independent assurance on the adequacy and effectiveness of the governance, risk management and internal control. The Internal Audit is headed by the Group Chief Internal Auditor who report functionally to the Board Audit & Examination Committee (BAEC) and administratively to the Group Chief Executive Officer. The internal audit process and activities adopt the standards and principles outlined in the Internal Control Framework of Committee of Sponsoring Organisation of the Treadway Commission (COSO) and the objectives set by the Institute of Internal Auditors’ International Professional Practices Framework which comprises the core principle for the Professional Practice of Internal Auditing, the definition of Internal Auditing and Code of Ethics. More detailed description of the Internal Audit function is highlighted in the BAEC Report as set out on pages 237 to 242 CORRUPTION RISK MANAGEMENT (CRM) The Group has formalised a comprehensive corruption risk framework into a cohesive policy known as the Group Corruption Risk Management Policy (GCRMP). The GCRMP advocates for a proactive approach through Corruption Risk Assessment (CRA) exercise to identify and mitigate corruption risks, engaging all the stakeholders in the detection of risks and the formulation of preventive strategies. These efforts are seamlessly integrated into our governance framework, thereby reinforcing our commitment to preventing corruption and nurturing an ethical business environment. The GCRMP is designed to comply with the ABMS ISO37001 standard, requiring the Group to assess both internal and external factors, along with the needs and expectations of stakeholders. These considerations are essential for maintaining the Group’s integrity and preventing instances of bribery and corruption, thus ensuring a fair business environment. CRM REVIEW The Group, through the Governance & Integrity Unit (GIU) under the Integrity & Governance Department (IGD), Group Compliance, has initiated the Corruption Risk Management (CRM) Review in alignment with Adequate Procedures – Principle IV: Systematic Review, Monitoring, and Enforcement. This initiative reinforces Bank Islam’s commitment to proactive governance and the mitigation of corruption risks. In 2024, the CRM review plan for the first-year cycle for the period of July 2024 to June 2025 was table and approved during the BAEC 04/2024 meeting held on 24 May 2024. The first-year cycle will assess 14 high-risk and medium-risk stakeholders, with eight (8) stakeholders reviewed between July and December 2024, and six (6) stakeholders from January to June 2025. This systematic approach reflects Bank Islam’s dedication to ethical governance and its proactive measures to prevent corruption. ORGANISATIONAL ANTI-CORRUPTION PLAN (OACP) 2022-2025 Bank Islam OACP 2022-2025 highlights three-year strategy which emphasise Bank’s commitment to governance, integrity, and anti-corruption controls. The OACP serves as a comprehensive framework to effectively address corruption issues and promote transparency in business practices. The three-year strategy encompasses 141 initiatives across short, medium, and long-term goals, focusing on four (4) key areas: Business, Branch Operations, Administration & Support, and Governance. Regularly reviewed to align with organisational needs, the OACP aims to reduce integrity and corruption-related misconduct while fostering an ethical workplace culture that enhances customer trust and collective prosperity. Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 258 Statement on Risk Management and Internal Control
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