Bank Islam Integrated Annual Report 2020

Board Risk Committee (BRC) ǍƃǒȦdzƃǵ • Azizan Ahmad rƭdzƞƭȦȮ • Noraini Che Dan • Zahari @ Mohd Zin Idris • Mohd Yuzaidi Mohd Yusoff • Mashitah Haji Osman ӯƃɥɥɁȈȶɽljǁ ʥӝljӝǹӝ Ѵ ÝƺɽɁƹljɨ ѵѳѵѳӰ FȀȦdzƭȦ rƭdzƞƭȦ ɛǍȀ ȮƭȦɚƭƦ ǒǵ ҜҚҜҚ • Datuk Zamani Abdul Ghani ӯɨljɽȈɨljǁ ʥӝljӝǹӝ Ѵ Ãƃɨƺȃ ѵѳѵѳӰ Roles and Responsibilities ɰɰȈɰɽɰ ɽȃlj 9Ɂƃɨǁ Ȉȶ ljȶɰʍɨȈȶǼ ɽȃƃɽ ƃ ɰɁʍȶǁ ƃȶǁ ɨɁƹʍɰɽ ɨȈɰȟ ȴƃȶƃǼljȴljȶɽ ǹɨƃȴljʥɁɨȟ ƃɰ ljʯɥljƺɽljǁ ƹʰ 9Çà Ȉɰ Ȉȶ ɥȢƃƺlj ƃȶǁ ljǹǹljƺɽȈʤljȢʰ ȈȴɥȢljȴljȶɽljǁӝ ěȃlj 9Ą: ɥɨɁʤȈǁljɰ ƃȶ Ȉȶǁljɥljȶǁljȶɽ ɁʤljɨɰȈǼȃɽ Ɂȶ ɽȃlj ÃƃȶƃǼljȴljȶɽԇɰ ƃƺɽȈʤȈɽȈljɰ Ȉȶ managing credit risk, market risk, liquidity risk, operational risk, legal risk, Shariah risk and other risk and ensures that the risk management process is in place ƃȶǁ ǹʍȶƺɽȈɁȶȈȶǼӝ ěȃlj ǁljɽƃȈȢljǁ ɨɁȢljɰ ƃȶǁ ɨljɰɥɁȶɰȈƹȈȢȈɽȈljɰ Ɂǹ ɽȃlj 9Ą: ƃɨlj ɰljɽ Ɂʍɽ Ȉȶ Ȉɽɰ ěljɨȴɰ Ɂǹ Ąljǹljɨljȶƺlj ӯěÝĄӰӗ ʥȃȈƺȃ ʥƃɰ Ȣƃɰɽ ɨljʤȈljʥljǁ Ɂȶ ѵѼ ɥɨȈȢ ѵѳѵѳ ƃȶǁ is available on the Company’s website at www.bankislam.com . Meetings ěljȶ ӯѴѳӰ ȴljljɽȈȶǼɰ ʥljɨlj ȃljȢǁ ǁʍɨȈȶǼ ɽȃlj ǹȈȶƃȶƺȈƃȢ ʰljƃɨ ljȶǁljǁ ѶѴ Aljƺljȴƹljɨ ѵѳѵѳӗ Ȉȶ ȢȈȶlj ʥȈɽȃ ɽȃlj ɨljɧʍȈɨljǁ ǹɨljɧʍljȶƺʰ ƃɰ ɰɽȈɥʍȢƃɽljǁ Ȉȶ ɽȃlj ěÝĄ Ɂǹ ɽȃlj 9Ą:ӝ ɥƃɨɽ ǹɨɁȴ ɽȃlj 9Ą: ȴljȴƹljɨɰӗ ɽȃlj ȴljljɽȈȶǼɰ ƃɨlj ƃȢɰɁ ƃɽɽljȶǁljǁ ƹʰ ɽʥɁ ӯѵӰ ČČ: ɨljɥɨljɰljȶɽƃɽȈʤljɰӗ ɽȃlj :ȃȈljǹ KʯljƺʍɽȈʤlj ÝǹǹȈƺljɨӗ ɽȃlj :ȃȈljǹ ĄȈɰȟ ÝǹǹȈƺljɨӗ ɽȃlj :ȃȈljǹ Credit Officer, the Chief Compliance Officer and General Manager Strategic ĄljȢƃɽȈɁȶɰӝ ĄljʤȈljʥljǁ ƃȶǁ ǁljȢȈƹljɨƃɽljǁ ɽȃlj ǹɁȢȢɁʥȈȶǼ ɨljɥɁɨɽɰӖ • ĄȈɰȟ ÃƃȶƃǼljȴljȶɽ ƃȶǁ :ɨljǁȈɽ ÃƃȶƃǼljȴljȶɽ ɨljɥɁɨɽ covering credit risk, market risk, operational risk and Shariah non-compliance risk • KȴljɨǼȈȶǼ ĄȈɰȟ ɨljɥɁɨɽ • ěljƺȃȶɁȢɁǼʰ ĄȈɰȟ ƃȶǁ :ʰƹljɨɰljƺʍɨȈɽʰ ɨljɥɁɨɽ • :ɁȴɥȢȈƃȶƺlj ɨljɥɁɨɽ ƺɁʤljɨȈȶǼ ȶɽȈӸÃɁȶljʰ ¸ƃʍȶǁljɨȈȶǼӣ :Ɂʍȶɽljɨ yȈȶƃȶƺȈȶǼ Ɂǹ ěljɨɨɁɨȈɰȴ ӯ øӣ:yěӰӗ ɨljǼʍȢƃɽɁɨʰ compliance and update on new policies and regulations • AljʤljȢɁɥȴljȶɽ Ȉȶ yȈȶƃȶƺȈƃȢ Ãƃɨȟljɽ ƃȶǁ ěɨljƃɰʍɨʰ ĄljɥɁɨɽ • ĄljɥɁɨɽ Ɂȶ Ąljɥƃʰȴljȶɽ ɰɰȈɰɽƃȶƺlj ɽɁ :ʍɰɽɁȴljɨɰ ӯÃɁɨƃɽɁɨȈʍȴ ƃȶǁ ĄljɰɽɨʍƺɽʍɨȈȶǼ ծ ĄljɰƺȃljǁʍȢȈȶǼӰ • Complaints Management report • ČɽɨƃɽljǼʰ ƃȶǁ ĄljƃǁȈȶljɰɰ Āɨlj ƃȶǁ ĀɁɰɽ ÃɁɨƃɽɁɨȈʍȴ • ĩɥǁƃɽljɰ Ɂȶ 9Çà :ɁȴɥɁɰȈɽlj ĄȈɰȟ ĄƃɽȈȶǼ Ȉɰɰʍljɰ • ĀɁɰɽ ÃɁɨɽljȴ ĄljʤȈljʥ Ɂǹ ǁljǹƃʍȢɽljǁ ǹȈȶƃȶƺȈȶǼ ƺƃɰljɰ • :ɁȴɥȢȈƃȶƺlj ÃɁȶȈɽɁɨȈȶǼ Ɂǹ ĄȈɰȟ ɥɥljɽȈɽlj ɰɰljɰɰȴljȶɽ ѵѳѵѳ • ĄljʤȈljʥ Ɂǹ ĀȈȢȢƃɨ Ѷ AȈɰƺȢɁɰʍɨlj ĄljʤȈljʥljǁ ƃȶǁ ƃɥɥɨɁʤljǁ ɽȃlj ǹɁȢȢɁʥȈȶǼӖ • Strategies for liquidity management • Stress test scenario and its methodology for capital management • Credit scoring methodologies for credit management • ĄȈɰȟ ǁȚʍɰɽljǁ Ąljɽʍɨȶ Ɂȶ :ƃɥȈɽƃȢ ӯĄ ĄÝ:Ӱ ÃljɽȃɁǁɁȢɁǼʰ ƃȶǁ yʍȶǁɰ ěɨƃȶɰǹljɨ ĀɨȈƺȈȶǼ • Trading and investment strategies for Treasury taking into consideration the impact from the global pandemic • Limits for credit and market risk management • ĄljȶljʥƃȢ Ɂǹ ɁʍɽɰɁʍɨƺȈȶǼ ɰljɨʤȈƺlj ɥɨɁʤȈǁljɨ • ĀɨɁǁʍƺɽ ɥɨɁǼɨƃȴɰ ɥɨɁɥɁɰljǁ ƹʰ ɽȃlj ƹʍɰȈȶljɰɰ ʍȶȈɽɰ ɽɁ ensure it is in line with the target risk profile and risk acceptance criteria of the Bank • ĄljʤȈljʥ Ɂǹ ǁȴȈȶȈɰɽɨƃɽȈʤlj ʍɽȃɁɨȈɽʰ ǹɁɨ :ɨljǁȈɽ Ãƃɽɽljɨɰ • ĄljɰʍȢɽɰ Ɂǹ ŽȶɰɽȈɽʍɽȈɁȶƃȢ ĄȈɰȟ ɰɰljɰɰȴljȶɽ Ɂȶ øӣ:yě ƹʰ independent consultant • ĄȈɰȟ ƃɰɰljɰɰȴljȶɽ ɨljɥɁɨɽ ƹʰ Ȉȶǁljɥljȶǁljȶɽ ƺɁȶɰʍȢɽƃȶɽ Ɂȶ the implementation of new system application • ȶȶʍƃȢ ɨljʤȈljʥ Ɂǹ ÃƃʯȈȴʍȴ ěɁȢljɨƃƹȢlj AɁʥȶɽȈȴlj ǹɁɨ ƺɨȈɽȈƺƃȢ ƹʍɰȈȶljɰɰ ǹʍȶƺɽȈɁȶɰ ƃȶǁ ĄljƺɁʤljɨʰ ěȈȴlj ÝƹȚljƺɽȈʤlj ǹɁɨ ƺɨȈɽȈƺƃȢ systems ĄljʤȈljʥljǁ ƃȶǁ ɨljƺɁȴȴljȶǁljǁ ɽɁ ɽȃlj 9Ɂƃɨǁ ɽȃlj ǹɁȢȢɁʥȈȶǼӖ • ѵѳѵѴ ɨȈɰȟ ƃɥɥljɽȈɽlj ɰljɽɽȈȶǼ ǹɁɨ ɽȃlj 9ƃȶȟ ɽɁ ljȶɰʍɨlj Ȉɽ Ȉɰ Ȉȶ line with the corporate strategy and direction • ĄljʤȈɰljǁ ƺƃɥȈɽƃȢ ȢȈȴȈɽɰ ƃȶǁ ɰɽɨljɰɰ ɽljɰɽ ǁʍlj ɽɁ ɽȃlj Ȉȴɥƃƺɽ of global pandemic • ĄljɰɥɁȶɰlj ɽɁ 9Çà :ɁȴɥɁɰȈɽlj ĄȈɰȟ ĄƃɽȈȶǼ ѵѳѴѼ • ěȃlj ȈȴɥȢljȴljȶɽƃɽȈɁȶ Ɂǹ ɽȃlj ŽȶɽljɨȶƃȢ :ƃɥȈɽƃȢ ǁljɧʍƃƺʰ ɰɰljɰɰȴljȶɽ ĀɨɁƺljɰɰ ӯŽ: ĀӰ • Çljʥ ɥɨɁǁʍƺɽӣɰljɨʤȈƺljɰ ɥɨɁɥɁɰljǁ ƹʰ ɽȃlj ƹʍɰȈȶljɰɰ ʍȶȈɽɰ • Signif icant business and operating policies, risk management policies and compliance related policies of ɽȃlj 9ƃȶȟ ʥȃȈƺȃ ȈȶƺȢʍǁlj :ɨljǁȈɽ ĄȈɰȟ ĀɁȢȈƺʰӗ ÝʍɽɰɁʍɨƺȈȶǼ ĀɁȢȈƺʰӗ :ɁȴɥȢȈƃȶƺlj ĄȈɰȟ ɰɰljɰɰȴljȶɽ ĀɁȢȈƺʰӗ ȶɽȈӸ9ɨȈƹljɨʰ ĀɁȢȈƺʰ ƃȶǁ :ɁɨɨʍɥɽȈɁȶ ĀɁȢȈƺʰӗ ŚȃȈɰɽȢlj 9ȢɁʥȈȶǼ ĀɁȢȈƺʰӗ ÃƃȶƃǼljȴljȶɽ Ɂǹ :ʍɰɽɁȴljɨ ŽȶǹɁɨȴƃɽȈɁȶ ƃȶǁ ĀljɨȴȈɽɽljǁ AȈɰƺȢɁɰʍɨlj ĀɁȢȈƺʰ ƃȶǁ ěɨljƃɽ :ʍɰɽɁȴljɨ yƃȈɨȢʰ :ȃƃɨɽljɨ • Outsourcing proposals 9Ą: ƺɽȈʤȈɽȈljɰ Ȉȶ ѵѳѵѳ 154 Accountabi l i t y Leader ship Financ ial Statement s CORPORATE GOVERNANCE OVERVIEW STATEMENT