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TECHNOLOGY AND INNOVATION IN RISK framework requires enhancement to incorporate stronger
MANAGEMENT AND COMPLIANCE DEPARTMENT risk governance and culture, reflective of KWAP’s business
expansion and current operations. Further to this, there is
KWAP extensively leverages on technology to handle the also a need to place greater emphasis on the importance
multiple portfolio analytics and scenario analysis to cater of enterprise risk management in strategic planning and
for KWAP’s portfolio risk management needs. KWAP embedding it throughout the organisation.
subscribed to investment risk systems with integration
to the investment management systems and market As such, to be able to adapt and address the internal
data providers for risk analytics purposes, of which key and external change, KWAP has embarked on a
risk measures are generated and used for management multi-year project to adopt the International Organisation
reporting and insights. for Standardisation (ISO) 31000:2018 ERM Standard
(ISO Standard), replacing the current ERM Standard. The
Business Continuity Management remains one of our key ISO Standard places greater emphasis on creating and
focuses for crisis management contingency and scenario protecting value as a key driver of risk management. It aims
planning. KWAP has automated the business continuity to deliver a clearer, shorter and more concise guide that
management framework and implemented a practical and will help KWAP use risk management principles to improve
sustainable business continuity management process. planning and make better decisions.
ENTERPRISE RISK MANAGEMENT In 2022, KWAP has successfully revised and streamlined

the current ERM framework to be in sync with the
The fundamental principles for managing risk in KWAP
are anchored on the Enterprise Risk Management (ERM) provisions of the ISO standards. The revised document
principles and key components described in both the ERM also elaborates on the principles, key components and
Framework and ERM Policy to support a sound and holistic processes that make for effective risk management.
risk management within KWAP. Leveraging on the Corporate Risk Profile (CRP) to support
The global economy has seen fundamental shifts through and complement the ERM framework and policy, CRP has
the years and with its changes in regulatory and business been used as a platform with a consistent approach in
models. Risk Management has evolved from a reactive and identifying, assessing, managing, and reporting transversal
independent function to a much more critical function with risks in relation to:
bigger capacity and increasingly connected to strategic i. Identification and assessment of risk using risk
decision making, with its own developing standard and management tools;
best practices.
ii. Effective implementation of controls and mitigation
KWAP had established its ERM framework in 2012 by action plans to manage risks;
adopting the Committee of Sponsoring Organisations
of the Treadway Commission (COSO) ERM - Integrated iii. Consistent monitoring and timely reporting of risks to
Framework (COSO ERM 2004). As risk management respective oversight committees; and
evolved from a narrow, limited discipline into an
interdisciplinary field with a comprehensive, integrated iv. Promoting risk ownership and accountabilities throughout
approach, there is a need to continuously improve the organisation, across all departments and staff of all
KWAP’s ERM framework, policies and practices. The levels.