Bank Islam Integrated Annual Report 2020

AȈƃǼɨƃȴ Ѵ ӵ ĄȈɰȟ ÃƃȶƃǼljȴljȶɽ ĀɨɁƺljɰɰ BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 165 Risk Management Process ɰɽƃȶǁƃɨǁ ɨȈɰȟ ȴƃȶƃǼljȴljȶɽ ɥɨɁƺljɰɰ has been adopted by the Group to ensure that Group-wide risks are properly identified and managed in a structured, systematic and consistent manner. The risk management process is as per AȈƃǼɨƃȴ Ѵӝ ĩȶǁljɨ ɽȃȈɰ ƃɥɥɨɁƃƺȃӗ ƃƺɽȈʤlj ȈȶʤɁȢʤljȴljȶɽ of the Board, Senior Management and staff of all levels are required in the risk management process to ensure a uniform view of risks across the Group. Risk Culture ĄȈɰȟ ƺʍȢɽʍɨlj Ȉɰ ȟljʰ ɽɁ ɽȃlj ȢɁȶǼӸɽljɨȴ ef fect i venes s of the Group’s r i sk ȴƃȶƃǼljȴljȶɽ ɰɽɨƃɽljǼʰӝ ɰ ljȶƺƃɥɰʍȢƃɽljǁ Ȉȶ ɽȃlj {ɨɁʍɥԇɰ ĄȈɰȟ ÃƃȶƃǼljȴljȶɽ ěƃǼȢȈȶljӗ ԄÃƃȶƃǼȈȶǼ ĄȈɰȟ Ȉɰ KʤljɨʰɁȶljԇɰ 9ʍɰȈȶljɰɰԅӗ building a strong risk culture is the responsibility of the Board, Senior Management and all employees of the Group . To ensure thi s , the r i sk management process and approach has been embedded in all the Group’s core business processes , functions and activities. The Group’s risk culture evolves over time and is a reflection, amongst others, of Senior Management actions, effective enforcement of policies and guidelines and communication strategies. RISK MANAGEMENT PROCESS Čɽljɥ ѴӖ Risk Identification Čɽljɥ ѶӖ Risk Control & Mitigation Čɽljɥ ѵӖ Risk Assessment Čɽljɥ ѷӖ Risk Monitoring & Reporting Shariah Non-Compliance Risk ČȃƃɨȈƃȃ ÇɁȶӸ:ɁȴɥȢȈƃȶƺlj ĄȈɰȟ ӯČÇ:ĄӰ Ȉɰ ɥƃɨɽ Ɂǹ ɁɥljɨƃɽȈɁȶƃȢ ɨȈɰȟ ƃȶǁ Ȉɰ ǁljǹȈȶljǁ ƃɰ Ԅɽȃlj ɨȈɰȟ Ɂǹ ȢljǼƃȢ Ɂɨ ɨljǼʍȢƃɽɁɨʰ ɰƃȶƺɽȈɁȶɰӗ financial loss or non-financial implications including reputational damage, which the Group may suffer arising from failure ɽɁ ƺɁȴɥȢʰ ʥȈɽȃ ɽȃlj ɨʍȢȈȶǼɰ Ɂǹ ɽȃlj ČȃƃɨȈƃȃ ǁʤȈɰɁɨʰ :ɁʍȶƺȈȢ Ɂǹ 9ƃȶȟ ÇljǼƃɨƃ ÃƃȢƃʰɰȈƃ ӯČ :Ӱ Ɂɨ ɰɽƃȶǁƃɨǁɰ Ɂȶ ČȃƃɨȈƃȃ ȴƃɽɽljɨɰ Ȉɰɰʍljǁ ƹʰ ɽȃlj ČȃƃɨȈƃȃ ČʍɥljɨʤȈɰɁɨʰ :ɁʍȶƺȈȢ ӯČČ:Ӱ Ɂǹ ɽȃlj 9ƃȶȟԅӝ ěȃlj ɨljɰɥɁȶɰȈƹȈȢȈɽʰ Ɂǹ ȴƃȶƃǼȈȶǼ ČÇ:Ą Ȉɰ ɰɥljƃɨȃljƃǁljǁ ƹʰ ɽȃlj {ɨɁʍɥԇɰ ČȃƃɨȈƃȃ ĄȈɰȟ ÃƃȶƃǼljȴljȶɽ ĩȶȈɽ ɽȃƃɽ Ȉɰ ǼʍȈǁljǁ ƹʰ ɽȃlj ĄȈɰȟ ÃƃȶƃǼljȴljȶɽ ǹɨƃȴljʥɁɨȟ ƃȶǁ ÝɥljɨƃɽȈɁȶƃȢ ĄȈɰȟ ÃƃȶƃǼljȴljȶɽ ӯÝĄÃӰ {ʍȈǁljȢȈȶljӝ ěȃlj ǁɁƺʍȴljȶɽɰ ǁljɽƃȈȢ Ɂʍɽ ɽȃlj ČȃƃɨȈƃȃ ɨȈɰȟ ȴƃȶƃǼljȴljȶɽ ɥɨɁƺljɰɰljɰ ƃȶǁ ɽɁɁȢɰ Ȉȶ Ɂɨǁljɨ ɽɁ ɥɨɁʤȈǁlj ƃ ƺɁȶɰȈɰɽljȶɽ ǹɨƃȴljʥɁɨȟ ǹɁɨ ȴƃȶƃǼȈȶǼ ČÇ:Ą ƃƺɨɁɰɰ ɽȃlj {ɨɁʍɥӝ ČȃƃɨȈƃȃ ɨȈɰȟ ȴƃȶƃǼljȴljȶɽ Ȉɰ ƃ ǁȈɰƺȈɥȢȈȶlj ɽȃƃɽ ɰʰɰɽljȴƃɽȈƺƃȢȢʰ ȈǁljȶɽȈǹȈljɰӗ ȴljƃɰʍɨljɰӗ ȴɁȶȈɽɁɨɰ ƃȶǁ ƺɁȶɽɨɁȢɰ ČÇ:Ą ɽɁ ȴȈɽȈǼƃɽlj ɽȃlj Ɂƺƺʍɨɨljȶƺlj Ɂǹ ČÇ: ljʤljȶɽɰ ʥȈɽȃȈȶ ɽȃlj {ɨɁʍɥӝ 9ljȈȶǼ ɥƃɨɽ Ɂǹ ɁɥljɨƃɽȈɁȶƃȢ ɨȈɰȟӗ Ȉɽ ȢljʤljɨƃǼljɰ Ɂȶ ɽȃlj ɰƃȴlj ɥɨȈȶƺȈɥȢljɰӗ ɥɨɁƺljɰɰljɰ and tools of operational risk. However, the tools are modified to suit the regulatory requirements on Shariah governance in Ɂɨǁljɨ ɽɁ ɥɨɁʤȈǁlj ƃ ɨɁƹʍɰɽ ƃȶǁ ƺɁȶɰȈɰɽljȶɽ ƃɥɥɨɁƃƺȃ Ȉȶ ȴƃȶƃǼȈȶǼ ČÇ:Ąӝ