KUALA LUMPUR, March 29 ― Bank Negara Malaysia (BNM) refreshed its risk appetite statements in 2022 to ensure it remains relevant in light of the changing risk landscape.
The central bank, in its Annual Report 2022 released today, said the refreshed risk appetite statements provided greater clarity around the boundaries for risk events that the bank does not tolerate, such as fraud and unethical conduct.
It said the statements also acknowledged that there are risks that would be difficult or undesirable to eliminate completely, while tolerance for some level of risk is also necessary to encourage innovation and operational efficiency.
“As such, the refreshed statements provide flexibility for the bank to take on measured risks in some areas, with these risks managed through appropriate safeguards.
“The refreshed risk appetite statements are being embedded into the bank’s processes and culture, to promote consistent, risk-informed decision-making aligned with the bank’s strategic goals,” it said.
BNM noted that the statements reiterated its commitment to excel in promoting monetary and financial system stability and fostering a sound and progressive financial sector, to achieve sustained economic growth for the nation.
“In pursuing the mandates, the bank faces risks arising from the domestic and external environment, nature-related changes, crisis events, proliferation of global digitalisation, and more sophisticated cyber-attacks.
“The bank also faces greater expectations from stakeholders demanding higher standards of transparency and engagement,” said the central bank.
Meanwhile, BNM has also placed a Cybersecurity Management Assessment Programme (CMAP) to assess and improve the level of the bank’s cyber security maturity.
In addition, the bank has deployed several key measures to safeguard its information assets including the use of technology to detect and prevent information leakages.
According to the report, BNM also refreshed its business impact analysis by incorporating new risk events scenarios such as floods and cyber-attacks.
“Regular crisis simulation exercises, including cyber drills, were also conducted to ensure that the bank’s business continuity plans remain responsive and effective,” it added. ― Bernama
