Bank Islam Integrated Annual Report 2020

39. FINANCIAL RISK MANAGEMENT (CONTINUED) (d) Liquidity risk (continued) Contractual maturity of financial liabilities on an undiscounted basis (continued) Bank As at 31 December 2019 Up to 1 month RM’000 >1 to 3 months RM’000 >3 to 6 months RM’000 >6 to 12 months RM’000 Over 1 year RM’000 Total RM’000 Financial Liabilities Deposits from customers 23,378,991 10,115,669 4,248,065 7,833,915 2,386,490 47,963,130 Investment accounts of customers 4,335,416 2,637,953 2,165,791 1,153,574 36,508 10,329,242 Derivative financial liabilities 5,529 20,360 19,987 30,779 644,638 721,293 Forward contract 5,284 18,158 12,402 83 – 35,927 Islamic Profit Rate Swap 245 2,202 7,585 30,696 644,638 685,366 Bills and acceptance payable 49,084 – – – – 49,084 Recourse obligations on financing sold to Cagamas 5,929 11,856 17,784 35,569 1,671,916 1,743,054 Subordinated Sukuk Murabahah – – 34,921 35,235 1,717,989 1,788,145 Other liabilities 948,847 – – – – 948,847 Lease liabilities 2,394 4,790 7,343 15,335 478,728 508,590 28,726,190 12,790,628 6,493,891 9,104,407 6,936,269 64,051,385 Commitments and Contingencies Direct credit substitutes 36,654 30,479 39,169 162,127 148,307 416,736 Transaction related contingent items 60,057 72,340 58,978 353,079 385,558 930,012 Short-term self liquidating trade relate contingencies 40,750 50,118 1,998 2,500 508,372 603,738 137,461 152,937 100,145 517,706 1,042,237 1,950,486 There is no disclosure for the Group as the Group’s figures are not materially different from the Bank’s figures. (e) Operational Risk Overview Operational risk is defined as the risk of loss arising from inadequate or failed internal processes, people and systems and external events, which includes legal risk and Shariah compliance risk but excludes strategic and reputational risk. Management of operational risk The Group and the Bank recognises and emphasises the importance of operational risk management (“ORM”) and manages this risk through a control-based environment where processes are documented, authorisation is independent, transactions are reconciled and monitored and business activities are carried out within the established guidelines, procedures and limits. BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 297