41. FINANCIAL RISK MANAGEMENT (CONTINUED) (e) Operational Risk (continued) Management of operational risk (continued) Group Compliance Division is responsible for ensuring effective oversight on compliance-related risks such as regulatory compliance risk, compliance risk as well as money laundering and terrorism financing risks through proper classification of risks and develops, reviews and enhances compliance-related training programmes as well as conducts training that promotes awareness creation. SCD of Group Compliance Division, is responsible for reviewing and monitoring Shariah compliance of the Group’s operations, activities and services at BU/ SU level. GISGD is responsible in managing technology risk by establishing, maintaining and enforcing technology risk policies and guidelines, as well as promoting Group-wide awareness on technology risk. It also works closely with Group Digital Division (“GDD”) in identifying, assessing, mitigating and monitoring of technology risk in the Group and the Bank. • 3rd line of defence – Group Internal Audit provides independent assurance to the Board and management on the effectiveness of the ORM process. (f) Offsetting Financial Assets and Financial Liabilities The Group and the Bank report financial assets and financial liabilities on a net basis on the balance sheet only if there is a legally enforceable right to set off the recognised amounts and there is intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. The following financial assets and liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements: Gross amounts of recognised financial assets in the statement of financial position RM’000 Gross amounts of recognised financial liabilities in the statement of financial position RM’000 Net amount presented in statement of financial position RM’000 Related amounts not set off in the statements of financial position Net amount RM’000 Financial instruments RM’000 Financial collateral received RM’000 2023 Derivatives assets 68,412 – 68,412 (42,230) (130) 26,052 Derivatives liabilities – 56,548 56,548 (42,230) (130) 14,188 2022 Derivatives assets 123,000 – 123,000 (62,402) (130) 60,468 Derivatives liabilities – 137,324 137,324 (62,402) (130) 74,792 391 1 2 3 4 5 6 7 8 9 www.bankislam.com FINANCIAL STATEMENTS
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