Page 119 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

The SC’s 6 steps Enterprise Risk Management Methodology

• Report periodically on • Define departments’ risk
status and updates in management structure
relation to work plans • Identify key risk officers

6 1
Report Organise

• Monitor and review • Identify inherent
risk profile on 5 2 risks within the ERM
the basis of new Monitor Assess framework
issues, progress of risk • Assess and score risks
corrective actions based on standardised
and risk trends
4 3
Adjust Assess
controls
• Develop and implement • Identify controls within the ERM
corrective action plans to address framework using standardised tools
gaps highlighted by size of • Assess and score controls based on
residual risk standardised methodology

governance, risk management and compliance The SC has also put in place sound internal control
practices through implementation of various to manage risks in its day-to-day operations.
guidelines and standards.
1. People Risk including risks from integrity
The Systemic Risk Oversight Committee, with and ethical conduct of staff member and
members comprising all Executive Team members, stakeholders. Management of such risks are
is responsible for providing the necessary guided through:
challenge, deliberation and strategic direction
on risk management issues of the SC. The Audit • A revised Code of Conduct, which came
Committee, on behalf of the Board, reviews into effect on 1 July 2018, sets out the
the adequacy and effectiveness of the SC’s risk expectations required of staff on ethical
management and internal control systems. conduct and standards of behaviour;

The SC faces various operational risks, which may • Statement of the SC’s Principles and
impact its financial position or result in operational Standards facilitates efficient and
disruption. In this regard, a well established system ethical engagement between the SC
of risk oversight, risk management and internal and its external stakeholders, which
control is put in place through the Enterprise Risk include suppliers, contractors, vendors
Management Framework. The SC is continuously and consultants. The SC also expects
enhancing its approach to risk management to its business stakeholders and all market
promote strong risk culture among employees participants engaging with the SC to
including the management and escalation of risks. emulate similar ethical principles;

PART 5 »» STATEMENTS, STATiSTiCS ANd ACTiviTiES | 109

NEW_90-222.indd 109 2/21/19 9:30 AM