RISK MANAGEMENT AT BANK NEGARA MALAYSIA BBFR 8003

RISK MANAGEMENT

PREPARED BY:NUR HAYATI BINTI MAISAM (07BB03015) NOR HAFIZATULAINI BINTI AZIZ (08BB03002)ROSWAHIDA BINTI AHMAD SHUBELI (07BB03001)

PREPARED FOR:SIR AHMAD YANI BIN ISMAIL

FOCUSING ON

• Background Of BNM• Overview Risk Management at Bank Negara

Malaysia• Risk Face by Bank Negara Malaysia• Enhance internal control and Risk Management• Governance In External Engagements• Enhanced Risk Management Governance

Structure

BACKGROUND OF BNM

• The Central Bank of Malaya Ordinance1958 (CBO) (Central Bank of Malaya untilthe formation of Malaysia in 1963) wasenacted on 23 October 1958.• Central Bank of Malaysia was establishedon 24 January 1959• The CBO was revised in 1994 and is now the

Central Bank of Malaysia Act 1958 (CBA).• 4 objective of BNM

Overview Risk Management at Bank Negara Malaysia

• Every year our country will face different issue of economy. Malaysian economy and Bank Negara Malaysia (BNM) have close relationship, so, BNM need to sensitively to manage the risk. BNM manage their risk successfully by certain policy.

• In risk management structured• In risk management practices

Risk Face by Bank Negara Malaysia and How their manage

a) Financial Risk: - Credit risk -Market risk -Operational risk

b) Policy Riskc) Project Riskd) Risk Management Culture

Enhance internal control and Risk Management

• In March 2009, the Board Audit Committee approved the Bank’s revised Internal Audit Charter.

• Initiatives was the transformation of the Risk Management Department,

GOVERNANCE IN EXTERNAL ENGAGEMENTS

• Bank’s engagements with external organizations.

• With the activities being centrally coordinated by the International, Central Banking Services and Corporate Services Departments.

Enhanced Risk Management Governance Structure

• 1) Board Of Committee• 2) Risk Management Committee (RMC):

-Financial Risk Management Committee (FRMC)-Operational Risk Management committee

(ORMC)• 3) Risk Management Department (RMD):

-Financial Risk & Operational Risk framework.