Page 41 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 Our Strategy 4 5 6 7 8 39

Type of Risk Description and impact How we manage or mitigate the risk
The risk of inability to fund any obligation • Enhance liquidity limits and strategy to manage and optimise
on time as they fall due, whether due to liquidity position
Liquidity Risk increase in asset or demand for funds • Enhance monitoring of key risk indicators to better track risk
from depositors. This ability has a serious exposures and provide early warning signals
implication on reputation and continued • Enhance Liquidity Contingency Funding Plan to manage liquidity
existence crisis
The risk could impact the Bank’s capital, • Ongoing monitoring of liquidity crisis early warning signals
liquidity, profitability and reputation • Ongoing review, enhancements and monitoring of risk appetite
• Diversification in pricing strategy
• Conduct periodic stress testing and scenario analysis
• Streamline and enhance Liquidity risk policies

Link to Material Matter Link to Impact on Capitals

The risk of loss resulting from inadequate • Enhance monitoring of key risk indicators to better track risk
or failed internal processes, people and exposures and provide early warning signals
Operational systems or from various external events. • Ongoing review and validation of operational risk tools, i.e.
Risk The effect may extend beyond financial Risk & Control Self-Assessment (RCSA), Key Risk Indicators (KRI)
losses and may result in legal and and Incident Management & Data Collection (IMDC)
reputational risk impacts • Ongoing management of bank-wide operational risks and
This risk could also create an impact on monitoring of risk ratings
the Bank’s profitability and ability to meet • Ongoing management of business continuity strategy and plan
regulatory requirements as well as disrupt • Ongoing management and monitoring of outsourcing
the Bank’s business arrangements and mitigation strategy
• Ongoing review, enhancements and monitoring of risk appetite
• Conduct periodic stress testing and scenario analysis
• Streamline and enhance Operational risk management policies
and procedures

Link to Material Matter Link to Impact on Capitals

Social &
Financial Capital Manufactured Capital Human Capital Intellectual Capital Relationship Capital Natural Capital