BIMB Integrated Annual Report 2017

58 Intended Outcome Companies make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives. The board is provided with reasonable assurance that adverse impact arising from a foreseeable future event or situation on the company’s objectives is mitigated and managed. Practice 9.2 The board should disclose the features of its risk management and internal control framework, and the adequacy and effectiveness of this framework. Application : Applied. Explanation on application of the practice : At BHB level, the internal control oversight responsibilities were initially carried out by the following committees:- • Audit & Examination Committee (“AEC”) The main responsibility of the AEC is to assist the Board in assessing the effectiveness of the Group’s internal control systems and overseeing the accounting system’s internal control. • Board Risk Committee (“BRC”) The BRC is responsible to assist the Board on risk management and oversee the Management’s activities in managing significant risk areas and to ensure that the risk management framework is in place and functioning effectively. At the Management level, the BRC is supported by the Group Risk Management Committee (“ GRMC ”) to oversee the risk management matters relating to the Group risk management activities. The minutes of the BRC is escalated to the Board for information. In respect of the key operating subsidiaries, in particular Bank Islam Malaysia Berhad (“ Bank Islam ”) and Syarikat Takaful Malaysia Berhad (“ Takaful Malaysia ”), the internal control oversight function is carried out by the respective subsidiaries’ BRC. At BIMB Securities Sdn Bhd (“ BIMB Securities ”), the risk management and internal control oversight function is carried out by its AEC. The risk management control structure and processes which have been instituted throughout the BHB Group are reviewed from time to time to cater for the changes in the business environment. BHB’s AEC and BRC together with the respective AEC/BRC at the key operating subsidiaries regularly reviews and monitors the Management’s approach and actions in addressing key risks at Company and subsidiaries level. It also provides the Board and the Management with the platform to anticipate and manage both the existing and potential risks, taking into consideration changing risk profile and risk appetite. This process has been in place and continued to be BHB Group’s practice for the financial year under review and up to the date of approval of this Statement for inclusion in this Integrated Annual Report.