Page 42 - Bank Muamalat_AR24

40 BANK MUAMALAT MALAYSIA BERHAD

PRINCIPAL RISKS AND UNCERTAINTIES

Type of Risk Description and impact How we manage or mitigate the risk
The risk that arises from failure to comply • On-going Shariah review
with the Shariah rules and principles as • Continuous monitoring & reporting of Shariah non-compliances
Shariah determined by the Shariah Committee • Enhanced monitoring and tracking of Shariah non-compliance
Non- (SC) of the Bank and relevant Shariah risk exposures via risk tools i.e. Key Risk Indicators, Risk Control
Compliance regulatory councils or committees Self-Assessment and Incident Management and Data Collection
Risk This risk creates regulatory, profitability • Ongoing review, enhancements and monitoring of risk appetite
and reputation impacts • Conduct periodic stress testing and scenario analysis
• Streamline and enhance Shariah risk management policies and
procedures

Link to Material Matter Link to Impact on Capitals

Risk arising from Technologies • Establish and operationalise new Technology Risk Management
vulnerabilities which could result in Framework (TRMF) and Cyber Resilience Framework (CRF)
Technology financial loss, disruptions to infrastructure, • Develop and implement IT & Cybersecurity Strategic Plan in
and operations and/or reputational harm. alignment with business requirements and adherence to BNM’s
cybersecurity Cybersecurity risk is the probability of Risk Management in Technology (RMiT) policy
risk operation/service disruption and loss of • Foresight by gathering FI threat intelligence through identify,
customer information as well as banking manage, and address technology and cyber risks related
record due to cyber threat or attack • Strengthen cyber resilience level and monitor sustainability of
This risk creates regulatory, profitability technology and cybersecurity controls
and reputation impacts as well as disrupt • Ongoing review, enhancements and monitoring of risk appetite
the Bank’s business

Link to Material Matter Link to Impact on Capitals

The risk of unexpected adverse • Ongoing review, enhancement and monitoring of the business
developments in the Bank’s performance strategies, risk appetite and capital planning process
Strategic stemming from fundamental strategic and • Conduct periodic stress testing and scenario analysis
Risk business decisions and their execution • Ongoing review, enhancements and monitoring of risk appetite
The risk may present impacts to the & business performance
Bank’s profitability, capital and reputation
Link to Material Matter Link to Impact on Capitals

M1 Economic M2 Entrepreneur M3 Carbon M4 Water M5 Waste M6 Employment M7 Diversity and Equal
Performance Development Management Management Management Opportunity

Training and Community Financial Customer Responsible Procurement Ethics &
M8 M9 M10 M11 M12 M13 M14
Education Development Inclusion Experience Financing Practices Integrity