1 CREDIT RISK 2 MARKET RISK Mitigation • Maintain a robust and prudent credit risk policy and limits to ensure credit default and losses are within the approved Risk Appetite. • Credit evaluation by the business is independently reviewed and constructively challenged by credit analysts prior to submission to Management and Board Committees for approval. • Independent post-credit review and post-mortem analysis is conducted regularly to assess and ensure asset quality standards are maintained. • Proactive and vigilant management at account level to prevent deterioration in asset quality. This includes granular portfolio risk reviews and monitoring. • All exposure and non-compliances, including emerging risk, are reported to Management & Board Committees. Definition Risk of loss of revenue and/or principal arising from the inability of an obligor to fulfil its financial obligation in accordance with agreed terms. Mitigation • Maintain a robust market risk policy and limits based on best practices. • Proactive monitoring, analysis and reporting to ensure that management of market risk is within the approved Risk Appetite. • Proactive review of all market risk parameters in line with the current economic environment. • Market Risk Limits/Management Action Triggers are reviewed regularly to ensure effective management of the risk. • All exposures and non-compliances are reported to Management & Board Committees promptly. Definition Risk of losses in on-and off-balance sheet positions arising from adverse movements in market prices/rates. KEY RISKS AND OPPORTUNITIES BANK I SLAM MALAYS IA BERHAD 58
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