What specific risks does Bank Negara Malaysia no longer tolerate?

Question

Accepted Answer

Bank Negara Malaysia Does Not Tolerate Fraud and Unethical Conduct

Bank Negara Malaysia (BNM) has clearly defined its boundaries regarding unacceptable risk events, specifically stating that fraud and unethical conduct are not tolerated. This stance was reinforced through the refresh of its risk appetite statements in 2022, aiming to provide enhanced clarity in a dynamic risk environment. These updated statements serve to guide the central bank's operations and decision-making processes.
Specific Boundaries for Risk Events

The refreshed risk appetite statements introduced in 2022 provide a more precise delineation of risk events that BNM deems unacceptable. Among these, fraud and unethical conduct are explicitly identified as boundaries that the bank does not tolerate. This focus ensures that integrity and ethical standards are maintained across all its functions and operations.
Balancing Risk Tolerance for Innovation

While certain risks are strictly disallowed, the updated statements also acknowledge that a complete elimination of all risks is neither feasible nor always desirable. BNM recognises that a degree of risk tolerance is essential to foster innovation and enhance operational efficiency. Therefore, the statements allow for measured risks to be undertaken in specific areas, provided these are managed through robust safeguards.
Embedding Risk Management into Culture

The refreshed risk appetite statements are actively being integrated into BNM's daily processes and organisational culture. This initiative aims to promote consistent decision-making that is informed by a thorough understanding of risks, ensuring alignment with the bank's overarching strategic objectives. The goal is to cultivate a pervasive culture of risk awareness and responsible risk-taking.
Broader Risk Landscape and Stakeholder Expectations

In pursuing its mandates, BNM operates within a complex landscape fraught with various risks. These include challenges stemming from domestic and external economic environments, climate-related changes, potential crisis events, the rapid advancement of global digitalisation, and increasingly sophisticated cyber-attacks. Concurrently, the bank faces heightened expectations from stakeholders, who demand greater transparency and more robust engagement.

Reading history

Hide →

This history is cleared when the page is closed.

What specific risks does Bank Negara Malaysia no longer tolerate?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends