The Board delegates certain of its governance responsibilities to Board Committees, which operate within clearly defined terms of reference, primarily to assist the Board in the execution of its duties and responsibilities. Although the Board has granted such discretionary authority to these Board Committees to deliberate and decide on certain key and operational matters, the ultimate responsibility for the final decision on all matters lies with the entire Board. The Audit Committee, the Board Risk and Compliance Committee and the Group Nomination and Remuneration Committee are chaired by Independent Directors. The Chairman of the respective committees is responsible for the effective operations of that Committee and the fulfillment of their duties which are clearly outlined in the Terms of References approved by the Board. The Terms of Reference of the Board Committees are regularly reviewed to ensure they remain aligned with CIMB’s corporate mission and vision.
Board Committee members are appointed by the Board on the recommendation of the Group Nomination and Remuneration Committee, which will review the composition of each Committee from time to time. Committee members are expected to attend each Committee meeting, unless there are exceptional circumstances that prevent them from doing so.
The Chairmen of the Board Committees report on matters dealt with at their respective Board Committee Meetings to the Board, with the exception of the Group Shariah Committee whose Chairman reports to the Board of CIMB Islamic Bank Berhad. Minutes of the Audit Committee, Board Risk and Compliance Committee and Group Nomination and Remuneration Committee meetings are also presented at the Board meetings for further discussion and direction, if any.
The Board Committees are as follows:
The Audit Committee is chaired by Dato’ Mohamed Ross Mohd Din and the members are Mr. Glenn Muhammad Surya Yusof and Datuk Mohd Nasir Ahmad, all of whom are Independent Directors.
All members have the relevant accounting or related financial management experience or expertise, with the Chairman having more than 35 years of extensive experience in the area of finance and accounting. The Audit Committee keeps the Board informed of its activities and recommendations from time to time.
Please click here to view the terms of reference for the Audit Committee
Board Risk and Compliance Committee
The Board Risk and Compliance Committee is chaired by Mr. Glenn Muhammad Surya Yusuf. The Board Risk and Compliance Committee is responsible for formulating and reviewing the risk management policies and risk appetite of CIMB Group.
The Board Risk and Compliance Committee, together with the Group Chief Risk Officer defines the risk management objectives across risk categories and business lines with a view of setting the Group’s risk appetite. The Board Risk and Compliance Committee reviews the overall risk profile on a periodic basis and approves the methodology to be followed for risk-based economic capital computation and the contingency plan for dealing with various events. In formulating the risk strategy, the Board Risk and Compliance Committee ensures due regard is given to “risk-aware” culture and discipline.
Please click here to view the terms of reference for the Board Risk and Compliance Committee
Group Nomination and Remuneration Committee
The Group Nomination and Remuneration Committee is chaired by Ms. Teoh Su Yin, an Independent Director. Four of the five members, including the Chairperson are Independent Directors.
The Group Nomination and Remuneration Committee recognises the importance of an appropriate balance and diversity of industry knowledge, skills, backgrounds, experience, professional qualifications, gender and nationalities in building an effective Board. It has established policies, criteria and a clear methodology in accordance with its terms of reference and the relevant regulatory requirements which provide the guidelines and framework for the Committee in discharging its duties. The Group Nomination and Remuneration Committee also oversees the nomination process and remuneration package of Non-Executive Directors and Key Senior Management of the local and regional subsidiaries and joint-venture entities of CIMB.
Please click here to view the terms of reference for the Group Nomination and Remuneration Committee
Other Group Committees
CIMB Group has also established other Board and Management Committees to assist the Board and Management in managing CIMB Group’s activities and operations. The composition of the Group Committees is regularly reviewed and revised to ensure the Committees operate effectively.
Group Shariah Committee
The Group Shariah Committee was established to cater for CIMB’s Islamic banking and capital markets businesses. The Group Shariah Committee resides at CIMB Islamic Bank Berhad and is leveraged by the Group.
This structure is in compliance with BNM’s Shariah Governance Framework for Islamic Financial Institutions, the Guidelines on the Governance of Shariah Committee for Islamic Financial Institutions (BNM/RH/GL 012-1), and Islamic Financial Services Act 2013. The objective of the establishment of the Group Shariah Committee is to ensure that the operations of the Islamic banking and capital markets businesses of CIMB are Shariah-compliant. In advising on such matters, the Group Shariah Committee ensures that the rulings relating to the Islamic banking and capital markets products and services comply with the judgements or the ijtihad of the relevant Shariah authorities, including the Shariah Advisory Council of BNM and Securities Commission in Malaysia, the Fatwa issued by Dewan Syariah Nasional – Majelis Ulama Indonesia and the Brunei State Mufti’s Office, wherever applicable. The Group Shariah Committee also takes into consideration Shariah Courts’ judgements and rulings published by the National and State Fatwa Councils, and the Brunei State Mufti’s Office.
Any non-compliance to Shariah matters is reported to the Shariah Committee and deliberated before reports are presented to the Board via the Board Risk Committee. The Chief Compliance Officer presents a periodic report on Shariah non-compliance and highlight rectification plans undertaken to address any non-compliance.
Please click here to view the terms of reference for the Group Shariah Committee.
International Advisory Panel
The International Advisory Panel (IAP) acts as an advisory body to CIMB’s Senior Management in the formulation and implementation of its international expansion policies. The IAP meets annually to review CIMB’s international expansion strategies and plans. The IAP comprises members of various nationalities whose combined experiences span a broad spectrum including the financial markets, industry, policy formulation and academia, both domestically and internationally. The members are as follows:
• Tun Musa Hitam (Chairman)
• Tan Sri Andrew Sheng
• Datuk Tong Kooi Ong
• Glenn Muhammad Surya Yusuf
• Goh Geok Khim
• Tan Sri Rainer Althoff
• Robby Djohan
• Tira Wannamethee
• Watanan Petersik
• Rex Auyeung
• Nicholas Rupert Heylett Bloy
• Dr. Roberto F. de Ocampo
• Tan Sri Dato’ Md Nor Yusof
The following Management Committees have been established to assist the Group Chief Executive Officer and Management in managing the various businesses and support activities in CIMB:
Group Wide Committees
• Group Management Committee
• Group Executive Committee
• Group Risk Committee
• Group IT Strategy Committee
• Group Human Resource Committee
• Group Operational Risk Committee
• Group Credit Committee
• Group Underwriting Committee
• Group ALCO Committee
• Group Market Risk Committee
• Group Credit Policy & Portfolio Risk Committee
• Group Reputation Risk Committee
• Regional Consumer Banking Committee
• Regional Cost Management Committee
• Regional Marketing and Communications Committee
• Regional Investment Banking Management Committee
• Corporate Banking, Treasury and Markets Management Committee
• Crisis Management Committee
• Disciplinary Committee
• IT Prioritisation Committee
• Occupational Safety and Health Committee