Page 43 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 Our Strategy 4 5 6 7 8 41

Type of Risk Description and impact How we manage or mitigate the risk
The risk of loss arising from negative • Ongoing monitoring of Bank’s risk rating
perception of the Banks’s image by • Perform competitive analysis on industry and market benchmark
conduct or business practice which • Build and protect goodwill
Reputational adversely impact profitability, operations
Risk • Institutionalise and monitor culture and compliance
or shareholder value
The Bank’s reputation, liquidity, capital
and profitability may be impacted by
this risk

Link to Material Matter Link to Impact on Capitals

Climate risk refers to the financial dangers • Thoroughly evaluating exposure to climate-related risks
stemming from climate change impacts across portfolios for risk assessment, guided by Climate Risk
Climate Risk and efforts to reduce carbon emissions, Management Framework
like potential losses from financings to • Integrating climate risks into every aspect of planning and
industries vulnerable to extreme weather investment decisions
events or policy shifts • Thoroughly assessing potential impacts of different climate
Climate risk poses financial, operational, scenarios through Climate Risk Stress Testing
and reputational threats to the Bank • Close collaboration with stakeholders to effectively address
due to increased defaults on financings, climate-related challenges
reduced asset values, infrastructure • Enhancing resilience against climate hazards through
disruptions, and reputational damage implementation of strategies
• Actively supporting efforts aimed at reducing greenhouse gas
emissions
• Providing transparent information on climate risk is necessary for
informed decision-making
• Advocating for policies that promote sustainability and resilience
in the face of climate change
Link to Material Matter Link to Impact on Capitals

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