BIMB Integrated Annual Report 2017

60 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 9.3 - Step Up The board establishes a Risk Management Committee, which comprises a majority of independent directors, to oversee the company’s risk management framework and policies. Application : Adopted. Explanation on adoption of the practice : The Board Risk Committee (“ BRC ”) was established in the later part of year 2016 in accordance with BNM’s Corporate Governance Policy to fulfil the obligation of BHB as a Financial Holdings Company. The Board Risk Committee’s primary responsibilities include, identifying critical risks area and key trends and deliberation of strategic action plans to mitigate the impact of such risks. In discharging its responsibilities, the Board Risk Committee is assisted by the Group Risk Management Committee, consisting of the key senior management of BHB and its major subsidiaries. The Company recognises that effective risk management is critical to the achievement of strategic objectives and the longterm sustainable growth of the business. In 2017, six (6) Board Risk Committee meetings were held to identify and mitigate the risks that would compromise the interest of the Group and its stakeholders at large. The BRC members and details of their attendance of the BRC meetings held during the Financial Year can be found on page 109 of this Integrated Annual Report. The BRC consists of three (3) Independent Non-Executive Directors and chaired by Encik Mohd Tarmidzi Ahmad Nordin (“ Encik Mohd Tarmidzi ”). Encik Mohd Tarmidzi is an Associate member of the Chartered Insurance Institute (UK) (ACII) and Fellow of the Malaysian Insurance Institute (AMII). Encik Mohd Tarmidzi has more than 30 years of experience in takaful and finance. The BRC is supported by the Group Risk Management Committee (“ GRMC ”) which is chaired by the Group Chief Strategy Officer. The other members of the GRMC are the Group Chief Financial Officer of BHB together, the Risk Officer of each key operating subsidiaries. The GRMC assists the BRC to effectively manage the key risk areas of the Company and Group and to ensure that an appropriate risk management system and internal controls are in place and functioning effectively. The BRC members have vast experience in fields such as finance, accounting, audit and procurement to enable them to discharge their responsibilities as members of the Committee.