Opportunities Opportunities Our Approach • Adhering to a comprehensive suite of policies that drives and enforces best practices for data governance and management. • Progressively investing in cutting-edge technologies and implementing new security measures to safeguard our assets amidst a complex threat landscape. • Empowering our employees through comprehensive training programmes, integrated security practices, and transparent reporting channels to foster a culture of privacy and risk awareness. • Regularly engaging with regulators and industry participants to exchange knowledge and stay aligned with evolving regulations and industry best practices. Our Approach • Progressively enhancing our climate risk management practices and disclosures, guided by our Group Enterprise-wide Risk Management Policy and BNM’s guidance documents. • Minimising our operational emissions through renewable energy, energy efficiency and other areas of impact. • Working closely with our clients and suppliers to enhance their environmental practices. Risks • Security breaches and failure to uphold data protection laws may result in regulatory, legal, and financial repercussions. • This would further erode customer trust and harm the bank’s reputation, potentially resulting in business losses and diminished long-term credibility. Risks • Credit Risk: Impacts on our customers’ financial performance, such as increased capital expenditure, potential fines or higher operational costs, particularly due to stricter environmental regulations. • Market Risk: Exposure to fluctuations in market conditions, including declining market valuations and the repricing of investments held by the bank. • Liquidity Risk: Risks arising from significant withdrawals or drawdowns of committed facilities required to recover from extreme weather events. • Operational Risk: Disruptions to operations or supply chains caused by extreme weather events, potentially affecting our business continuity. Data Privacy and Security DPS Climate Risks and Opportunities CRO Why It Is Important Data privacy and security are fundamental to building digital trust, enabling resilient and secure operations, ensuring regulatory adherence, maintaining customer trust, and driving long-term success. Why It Is Important By proactively identifying our climaterelated risks and opportunities, we are better placed to mitigate the negative impacts of climate change and develop products and solutions that position us strongly in the low-carbon economy. • Adopting a transparent and proactive approach to data privacy and security, and thereby further building our reputation as a trustworthy, future-ready organisation. • Identifying and investing in green financing opportunities to support climate-positive economic activities. • Prioritising risk-weighted financing decisions to proactively manage and mitigate climate-related risks. • Assisting our clients in transitioning to more sustainable business models by offering customised financial solutions. • Building internal expertise in climate risk assessments to enhance our decision-making and strengthen our risk management strategies. Link to: Capitals FC HU IN CU LC Our Key Stakeholders CC Strategic Focus Areas D Link to: Capitals FC IN NT MF VBC Strategic Focus Areas EM GR IV Our Key Stakeholders UNSDGs: UNSDGs: Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 56 Material Matters
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