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

PRINCIPAL RISKS (CONtINuED)

R7 Cyber Security Risk

Cyber Security risk is potential threats or Our response:
vulnerabilities that can compromise the • Implements a robust Cyber Security Framework and
confidentiality, integrity and availability of Programme to effectively manage risk of cyberattacks
an organisation’s digital assets, information and strengthen the monitoring of security controls.
systems and data. The growing reliance on • Establish Cyber Security Incident Response Plan
technology and digital infrastructure in an and perform Cyber Security Incident simulation on
increasingly digital world has increased the risk ransomware attack to test the readiness of KWAP in
of cyberattacks. With technology continuing responding to cyber security threats.
to evolve, the risks associated with cyber • Conduct regular security awareness programmes for
security are likely to increase, resulting in employees such as Security Awareness Training (SAT)
increasing losses due to cyber theft or cyber modules and simulated phishing exercises.
terrorism including loss of productivity due to • Deployment of network detection and response tools to
increased cybercrimes. In addition, the artificial respond to cyberattacks.
intelligence (AI) is expected to be widely • Implement Local Administrator Password Solution (LAPS)
adopted by both cybercriminals and those in measure to restrict cyber security threat exposure.
cyber security and accelerating change in this
sector.

Risk Category: Emerging Risk

R8 Compliance Risk

Compliance risk is the risk of legal or regulatory Our response:
sanction, financial loss or loss to reputation • Establish a Compliance Framework which forms the
that an organisation may suffer as a result of building blocks of our compliance function.
its failure to comply with all applicable laws, • Robust compliance process which includes Identification,
regulations, codes of conduct and standards or Assessment, Attestation, Monitoring and Reporting as
good practice. well as Validation.
• Tone-from-the-top uncompromising stance on
Risk Category: Traditional Risk compliance which expands to all our external fund
managers.
• Implement compliance controls such as Chinese
Wall Policy, Automated Self-Compliance Checklist,
Compliance Review Exercises, Risk and Compliance
Visits to EFMs as well as Know Your Counterparty (KYC)
Screening.

36 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) i INtEGRAtED REPoRt 2023