Risk & Compliance Framework

The Enterprise Risk Management Framework was designed in accordance with ISO 31000:2009 Risk Management Principles and Guidelines while the Compliance Framework was designed based on the internationally recognized ISO 19600 Compliance Management System. Business Continuity Management Framework was developed in line with ISO 22301 standard. In addition, the Group adopts the Guidelines on Financial Market Infrastructures issued by the SC Malaysia and Principles for Financial Market Infrastructures (PFMI) issued International Organisation of Securities Commissions (IOSCO), to manage the risks of its business and operations. One of the key features of the risk management framework is the implementation of the three lines of defence comprising established and clear functional responsibilities and accountabilities for the management of risk.  

The application of the ERM framework also extends to the management of risks for the clearing houses of BMSC and BMDC, in which both are exposed to counterparty risks from the clearing participants.