Table 1. Summary of the key organ... | Emerald Publishing

Table 1.

Summary of the key organ functions

Key organs	Functions
Sharīʿah risk management	• To integrate Sharīʿah non-compliance risk with conventional risk management • To identify potential Sharīʿah non-compliance risk exposures; • To assess and measure potential impact of Sharīʿah non-compliance risk exposures • To develop appropriate risk mitigation measures • To closely monitor both Sharīʿah non-compliance risk exposures and effectiveness of the risk mitigation measures • To report to the BOD, the SC and senior management on Sharīʿah non-compliance risk exposures • To challenge decisions that may give rise to Sharīʿah non-compliance risks
Sharīʿah review	• To identify, assess and monitor Sharīʿah-compliance by the IFI • To report on a regular basis Sharīʿah non-compliance issues and findings to the BOD, the SC and senior management • To inform and provide latest updates on regulatory requirements, especially SAC rulings to the BOD, the SC and senior management • To ensure the IFI’s officers are provided with adequate training and guidance on relevant Sharīʿah requirements
Sharīʿah audit	• To assess the risk profile and each auditable area’s exposures by developing a strong audit methodology • To develop a comprehensive Sharīʿah audit plan for the Sharīʿah audit process • To provide guidance on gathering information, auditing procedures and audit assessment by developing a clearly documented Sharīʿah audit programme • To communicate the audit findings, recommendations for rectification measures and auditee’s responses and action plans to the BOD and the SC through an audit report

Key organs	Functions
Sharīʿah risk management	• To integrate Sharīʿah non-compliance risk with conventional risk management• To identify potential Sharīʿah non-compliance risk exposures;• To assess and measure potential impact of Sharīʿah non-compliance risk exposures• To develop appropriate risk mitigation measures• To closely monitor both Sharīʿah non-compliance risk exposures and effectiveness of the risk mitigation measures• To report to the BOD, the SC and senior management on Sharīʿah non-compliance risk exposures• To challenge decisions that may give rise to Sharīʿah non-compliance risks
Sharīʿah review	• To identify, assess and monitor Sharīʿah-compliance by the IFI• To report on a regular basis Sharīʿah non-compliance issues and findings to the BOD, the SC and senior management• To inform and provide latest updates on regulatory requirements, especially SAC rulings to the BOD, the SC and senior management• To ensure the IFI’s officers are provided with adequate training and guidance on relevant Sharīʿah requirements
Sharīʿah audit	• To assess the risk profile and each auditable area’s exposures by developing a strong audit methodology• To develop a comprehensive Sharīʿah audit plan for the Sharīʿah audit process• To provide guidance on gathering information, auditing procedures and audit assessment by developing a clearly documented Sharīʿah audit programme• To communicate the audit findings, recommendations for rectification measures and auditee’s responses and action plans to the BOD and the SC through an audit report

Source: Bank Negara Malaysia (BNM, 2019)