Page 26 - Bank Muamalat_AR24

24 BANK MUAMALAT MALAYSIA BERHAD

CHAIRMAN’S STATEMENT:
SAFEGUARDING FUTURES,

EMPOWERING LIVES

Recognising the rising digital
threats, the Board provided
strategic guidance in strengthening
cybersecurity and data governance,
reviewing and approving enhanced
policies and frameworks.

GOVERNANCE IN ACTION

At the heart of the Board’s oversight is the commitment the fast-evolving landscape of banking, Board members
to effective governance, which we view as paramount in continuously enhance our knowledge and skills through
ensuring sustained performance, prudent risk management, structured development programmes. These programmes
and value creation for all stakeholders. In 2024, our governance are designed to keep the Board abreast of emerging trends,
priorities were closely aligned with the challenges and regulatory changes, and strategic opportunities, thereby
opportunities presented by a dynamic digital and regulatory strengthening our ability to provide effective oversight and
environment. Recognising the rising digital threats, the Board guidance. Proactive engagement with regulators was another
provided strategic guidance in strengthening cybersecurity key aspect of our commitment to good governance.
and data governance, reviewing and approving enhanced
policies and frameworks. This also extended to sustainability More details on pages 156 to 170
matters, ensuring ESG considerations were embedded into
business decisions, aligned with national aspirations like the RISK OVERSIGHT AND RESILIENCE
Financial Sector Blueprint 2022-2026.
Through the Board Risk and Compliance Committee,
Advancing the Bank’s digital journey, a dedicated Board the Board proactively reviewed management’s horizon
Technology Committee was tasked with actively monitoring scanning activities, particularly on volatile market
the progress of these digital initiatives, particularly within conditions, technological disruptions, and credit-related
the IT strategic plan and RISE26+ transformation. risks. A top-down, values-driven approach was taken to ensure
The Committee will also review and recommend identified risks were embedded within the Enterprise Risk
management’s strategies, policies, and frameworks related Management (ERM) framework.
to IT and digitalisation, including cybersecurity. Furthermore,
the Board enforced stringent data classification and In response to shifting customer profiles and market
encryption standards, especially concerning customer dynamics, risk acceptance criteria (RACs) were tightened
sensitive information. and the Risk Appetite Statement (RAS) enhanced to ensure
alignment with the Bank’s evolving portfolio mix, risk-bearing
In addition, given the increasing reliance on external digital ability, and external operating conditions. Mindful of market
partners, the Board ensured that management enhanced volatility and increased competition, we placed strong
due diligence and screening for all technology vendors, emphasis on liquidity risk governance and steered several
not only from a Shariah perspective but also on enhancements to the Bank’s risk management framework,
cost-effectiveness. including the endorsement of the Bank’s Liquidity
Contingency Funding Plan (LCFP) and approving
Throughout it all, we further fortified transparency and management’s direction to pursue diversification in
integrity, by undertaking an annual Board Effectiveness and the Bank’s funding and pricing strategy.
Evaluation exercise to identify areas for improvement and
optimise strengths. In line with regulatory expectations and