��������Ƶ

An Enterprise Risk Management Framework helps Malaysian organizations identify, assess, and handle business risks systematically. It follows Bank Negara Malaysia's guidelines and helps companies meet requirements under the Malaysian Code on Corporate Governance, creating a structured approach to managing everything from financial risks to operational challenges.

This framework gives management teams a clear roadmap for protecting company assets, maintaining compliance, and making better decisions about risk. It includes specific tools and processes that fit Malaysian business practices, helping boards and executives spot potential problems early and respond effectively while staying aligned with local regulatory expectations.

Malaysian companies need an Enterprise Risk Management Framework when expanding operations, entering new markets, or facing increased regulatory scrutiny from Bank Negara Malaysia. It's particularly crucial during mergers and acquisitions, when launching new products, or if your company is preparing for public listing on Bursa Malaysia.

This framework becomes essential when your organization needs to demonstrate strong governance to stakeholders, manage complex supply chain risks, or respond to significant market changes. It's especially valuable during strategic planning cycles, when onboarding new board members, or if your company operates in highly regulated sectors like banking, insurance, or telecommunications.

• Strategic ERM Framework: Focuses on high-level organizational risks and aligns with Malaysian Code on Corporate Governance requirements
• Operational Risk Framework: Details day-to-day risk management processes and controls, especially crucial for financial institutions under BNM guidelines
• Industry-Specific Framework: Tailored for sectors like Islamic banking, manufacturing, or telecommunications with unique regulatory requirements
• Project-Based Framework: Designed for managing risks in specific initiatives or transformational programs
• Integrated Framework: Combines multiple risk types and compliance requirements into a comprehensive system suitable for listed companies

• Board of Directors: Ultimately responsible for approving and overseeing the Enterprise Risk Management Framework, ensuring it aligns with corporate strategy
• Risk Management Committee: Develops and maintains the framework, monitors its effectiveness, and reports to the board
• Chief Risk Officer: Leads implementation, coordinates risk assessments, and ensures compliance with Bank Negara Malaysia guidelines
• Department Heads: Apply framework requirements within their units and report risks to senior management
• Internal Auditors: Evaluate framework effectiveness and compliance, providing independent assurance to stakeholders

• Risk Assessment: Document current business risks, regulatory requirements, and industry-specific challenges facing your organization
• Stakeholder Input: Gather feedback from department heads, board members, and key employees about risk concerns and control measures
• Regulatory Review: Check latest Bank Negara Malaysia guidelines and Malaysian Code on Corporate Governance requirements
• Process Mapping: Create detailed workflows showing how risks will be identified, assessed, and managed
• Control Documentation: List existing internal controls, reporting mechanisms, and monitoring procedures
• Framework Structure: Our platform helps organize these elements into a comprehensive, legally-sound framework

• Framework Scope: Clear definition of covered business activities, entities, and risk categories aligned with BNM guidelines
• Governance Structure: Detailed roles and responsibilities of board, management, and risk committees
• Risk Assessment Methodology: Standardized approach for identifying, measuring, and categorizing risks
• Control Mechanisms: Specific procedures for risk mitigation, monitoring, and reporting
• Compliance Requirements: References to relevant Malaysian regulations and industry standards
• Review Process: Procedures for regular framework updates and effectiveness assessment
• Reporting Templates: Standardized formats for risk reporting and escalation procedures

While both documents address risk management, an Enterprise Risk Management Framework differs significantly from a Risk Management Policy. Understanding these differences helps organizations choose the right document for their needs in the Malaysian regulatory environment.

• Scope and Hierarchy: The Framework provides the overarching structure and methodology for managing all risks across the organization, while the Policy outlines specific rules and procedures for handling individual risk categories
• Implementation Level: The Framework establishes governance structures and risk appetite at the board level, whereas the Policy details operational procedures for day-to-day risk management
• Regulatory Alignment: The Framework must align with Bank Negara Malaysia's broader governance requirements, while Policies focus on specific regulatory compliance areas
• Review Cycle: Frameworks typically undergo comprehensive reviews annually at board level, while Policies can be updated more frequently as operational needs change