Compliance Risk Management in Malaysia: A Strategic Imperative for Businesses
Introduction
In today’s complex regulatory landscape, compliance risk management has become a crucial function for businesses operating in Malaysia. As a key player in the Malaysian market, Bursa Group recognizes the importance of ensuring its activities are compliant with relevant rules, laws, and regulatory requirements.
The Role of IGCM
The Integrity Governance and Compliance Management (IGCM) function plays a vital role in achieving this goal. IGCM serves as a strategic partner to the Board, Management, and business units within the Group by providing valuable insights on risk and compliance matters.
Key Responsibilities
- Regular engagement with various business units to gain a comprehensive understanding of company operations, associated risks, and implications
- Offering valuable observations that can impact strategic business decisions
- Providing guidance and support to ensure compliance with relevant laws, regulations, industry codes, and standards
The Bursa Malaysia Integrity Governance and Compliance Management Framework
The framework was formulated to set out the Group’s approach towards managing its compliance obligations and mitigating compliance risk. Its objectives are to:
- Achieve high standards of compliance with relevant laws, regulations, industry codes, and standards
- Set standards of good governance, best practices, ethics, and community expectations
- Ensure that Bursa Malaysia activities are carried out in a professional and environmentally responsible manner
Embedding a Strong Compliance Culture
IGCM has embedded a strong compliance culture within the Group by adopting internationally recognized standards such as the ISO 19600 Compliance Management System - Guidelines. This ensures that all business units adhere to the highest standards of compliance.
Enterprise Risk Management Principles and Framework
In line with the Bursa Malaysia’s Enterprise Risk Management Principles and Framework, IGCM is well-positioned to provide valuable observations that can impact strategic business decisions.
Benefits of Effective Compliance Risk Management
By managing compliance risk effectively, businesses in Malaysia can:
- Ensure a strong reputation
- Reduce regulatory scrutiny
- Achieve good governance and sustainability