APPROVALS (CONTINUED) vii) Rescheduling & Restructuring Oversight Committee; viii) Financing Committee A; ix) Financing Committee B; x) iTEKAD Asnaf Assessment Committee; and xi) Tender Evaluation Committee for Vendor Management. SHARIAH GOVERNANCE We had approved in our meetings several initiatives undertaken by the Bank in strengthening its Shariah governance, including the review of the Shariah Compliance Policy and Shariah Compliance Guideline of Bank Islam Labuan Offshore Branch (BILOB), Charity Fund Management Guideline and Business Zakat Guideline for subsidiaries, i.e. Farihan Corporation Sdn Bhd and Al-Wakalah Nominees (Tempatan) Sdn. Bhd. that aims, among others, to set out the Shariah governance framework within the Bank and ensure our business operations are in line with the Shariah rules and principles. SHARIAH RISK MANAGEMENT We observed that the Bank continuously implemented appropriate measures in managing its Shariah non-compliance (SNC) risk. Firstly, the implementation of Risk Control Self-Assessment (RCSA) aims to assess the significance of identified SNC risks and the effectiveness of the controls in the respective functional areas. Since the introduction of RCSA, a continuous process of identifying and assessing SNC risks at various functional areas have been carried out by all Risk Controllers (RCs). The RCs are also responsible for driving and implementing appropriate controls to mitigate any SNC events while achieving the business objectives of their respective areas. The semi-annually RCSA result, specifically the SNC risk exposures of the Bank, is also tabled in the Management Risk Control Committee and our meetings for monitoring and oversight purposes. Secondly, this year we continue our initiatives in establishing checklists to assist frontliners and relevant functions in managing SNC. For instance, in 2020, the Bank established the Shariah Related Complaint Checklist to guide complaint handlers and product owners to identify Shariah-related complaints lodged by customers. This year, the Bank has extended the initiative by establishing the Shariah Non-Compliant Issues Checklist to identify Shariah related litigation cases. Finally, the Operational Risk Integrated System (ORIS) launch covers the Shariah compliance elements on top of Operational Risk and Business Continuity Management. This platform can manage risk profiles for all business and support units more effectively, thus reducing the probability of SNC or Shariah-related events. BANK I SLAM MALAYS IA BERHAD 220 Report of the Shariah Supervisory Council
RkJQdWJsaXNoZXIy NDgzMzc=