Page 120 - KWAP_Integrated-Report_2023

ENRICHING tHE FUtURE ENRICHING NAtIoNAL PRoGRESS ENRICHING StAKEHoLDER VALUE ENRICHING SUStAINABLE IMPACt

StAtEMENt ON RISK MANAGEMENt

AND INtERNAL CONtROL (CONtINuED)

In managing our investment portfolios, KWAP extensively RMCD operates with a structured framework comprising
leverages on best-in-class technology to handle multiple three integral sections: the Enterprise Risk Section, the
portfolio analytics and scenario analysis to cater to KWAP’s Investment Risk Section and the Compliance Section.
investment risk management needs. KWAP subscribes to Each of these segments plays a pivotal role in ensuring the
investment risk systems with integration to the investment robustness and integrity of the organisation’s operations,
management systems and market data providers for as follows:
risk analytics purposes, of which key risk measures are
generated and used for management reporting and insights. • Enterprise Risk Section: Focuses on identifying,
assessing and mitigating risks that could potentially
RISK MANAGEMENt AND COMPLIANCE impact the overall functioning and strategic objectives
of the enterprise. This section also manages operational
Introduction risk and business continuity in KWAP.
The Risk Management and Compliance Department • Investment Risk Section: Evaluates and manages risks
(RMCD) reports directly to KWAP Board through Board Risk associated with investment activities, safeguarding
and Compliance Committee (BRCC), which is responsible financial assets and optimising returns.
to review the risk management strategies, to determine risk
appetite, review the risk management framework, policies • Compliance Section: Monitors regulatory requirements
and limits, to review risk exposures and oversee the and internal policies, ensuring adherence to legal
overall risk management in KWAP. RMCD facilitates and standards and industry guidelines.
monitors the implementation of effective risk management
and provides independent oversight of risk management Together, these sections collaborate to fortify the
activities in KWAP. organisation’s risk management framework, fostering
resilience and sustainability in a dynamic business
landscape.

KEY ACtIVItIES IN 2023

Enhanced Enterprise Risk Management Processes
In 2023, after the integration of ISO 31000:2018 standards, we have strategically realigned risk management policy
to the KWAP’s Corporate policy and embedding it in KWAP’s Balanced Scorecard (BSC). Several initiatives were
introduced to further enhance enterprise-wide risk monitoring and assessment i.e., Risk Capacity, Risk Appetite,
Key Risk Indicators (KRI) and Risk Matrix. These are in line with KWAP’s dedication to continually nurture, improve
and uphold our risk infrastructure and culture.

Continuous Risk Management Awareness Engagement and Talks
Enhancing risk awareness and updating the organisation and employees on developments and best practices
across all aspects has been a constant in KWAP. We have conducted various activities aimed at promoting risk
management awareness and sound risk management practices within KWAP. These activities are as follows:
1. Risk and Compliance Day on 29 November 2023 for all KWAP employees with two main sharing sessions by
external industry experts as follows:
i. Ethical Leadership: Empowering Decision Makers in the Workplace.
The talk was to reinforce the importance of ethics within KWAP and how to practice them in our day-to-
day working life.

118 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) i INtEGRAtED REPoRt 2023