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ENRICHING PERFORMANCE AND COMMITMENTS ENRICHING ACCOUNTABILITY AND INTEGRITY ENRICHING RESILIENCE AND SUSTAINABLE GROWTH OTHER INFORMATION

subsidiaries in KWAP on annual basis. The two departments • Data Loss Tolerance Workshop to identify the
continue to instil the awareness on fraud and corruption maximum data loss that KWAP can tolerate after the
risk during training programmes and challenge sessions disruptive of events.
with all departments, functions and subsidiaries in KWAP.
• Annual review of all the enterprise Risk Assessment (RA)
In 2023, in order to benchmark ourselves against the and departmental Business Impact Analysis (BIA).
best industry practice, KWAP engaged with an external
consultant to conduct a thematic review on FRMP. The INVEStMENt RISKS
objectives were to enhance KWAP’s practices in fraud
and corruption risk management and to incorporate MARKEt RISK MANAGEMENt
industry-leading practices. The external consultant KWAP monitors market risk closely to safeguard its
provided advisory support and recommendations for financial assets against unexpected losses stemming
improving the overall implementation of fraud and from fluctuations in interest rates, equity prices, and
corruption risk management at KWAP and assurance foreign exchange rates. This proactive approach allows
that we were on the right track and operating within KWAP to adapt its investment strategies accordingly,
industry best practices. ensuring resilience in dynamic market conditions. By
continuously assessing and mitigating market risk, KWAP
BuSINESS CONtINuItY MANAGEMENt (BCM)
aims to optimise returns whilst maintaining prudent risk
BCM continues to be a key focus in KWAP. Crisis management practices.
management, contingency planning and scenario Market risk management in KWAP is anchored on the
development, ensures timely continuity and recovery of Market Risk policies, guidelines, risk system and risk
KWAP’s critical business processes following disruptive controls in place, of which these are implemented to
events or crises. KWAP has automated the business support sound and holistic market risk management. In
continuity management framework and implemented a addition, the RMCD provides an independent risk review of
practical and sustainable business continuity management investment proposals, as well as periodic investment risk
process. reporting to senior management.
In 2023, in line with its business expansion, KWAP has Market Risk Controls
successfully conducted several BCM exercises and
programme which not only aim to test the continuity Market Risk controls represent a series of market risk
of KWAP’s operations, but also to identify gaps and limits implemented to manage the market risk-taking
weaknesses. Subsequently, the result of the BCM exercises activities. They are periodically reviewed and adjusted to
were presented to the RCC and the BRCC based on reflect dynamic changes of KWAP’s investment strategy
KWAP’s BCM Policy. Following are the BCM programmes and external business environment. The key market risk
conducted: controls are illustrated below:
• Planned and surprise BCM Exercises involving critical Value-at- to measure and manage the possible
system and business functions in a live and non-live Risk losses that might happen because of
environment. changes in market rates and prices
over a set period, within a certain
• Periodic Call Tree exercises to test employee’s
responses in emergency communications. level of certainty. This helps KWAP
understand how it deals with risk based
• Mobilisation of KWAP personnel to alternate site on guidelines from the KWAP Board.
to perform system recovery and critical business
functions.

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