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  • Good Corporate Governance

    • RR-3.1.3

      Good corporate governance forms the foundation of effective reputational risk management and provides a framework for:

      (a) Guiding banks' conduct and actions in achieving their vision, values, goals and strategies, as well as meeting stakeholder requirements and expectations; and
      (b) Ensuring robust oversight of their conduct and actions.
      July 2018

    • RR-3.1.4

      Good corporate governance can be achieved by implementing a governance infrastructure and adopting governance practices in compliance with Module HC (High-level Controls).

      July 2018

    • RR-3.1.5

      The Board must be responsible for overseeing the overall reputational risk management processes.

      July 2018

    • RR-3.1.6

      A sound governance infrastructure should have the following general attributes:

      (a) Having the right people, with the right balance of skills and experience on the Board, with suitable checks in place to ensure that no single individual can influence Board decisions;
      (b) Including a robust framework for succession planning to ensure that the business can continue to function effectively, even when there is a major management or staff turnover; and
      (c) Enabling business and management performance to be closely overseen by independent directors.
      July 2018

    • RR-3.1.7

      Islamic bank licensees should adopt a governance approach that sets out clear governance objectives and expectations on reputational risk management, as well as the authorities and responsibilities of all parties engaged in the risk management process.

      July 2018

    • RR-3.1.8

      The following elements must be included in the banks' governance practice framework:

      (a) Setting a clear and unambiguous vision, values, goals and strategies, and ensuring that they are transparent;
      (b) Developing appropriate policy, codes of conduct, guidelines and procedures to support the implementation of the bank's vision, values, goals and strategies;
      (c) Creating an open and empowering corporate culture to encourage responsible and ethical behaviour, and to support the achievement of business objectives and effective risk management;
      (d) Building up a strong, stable management team that are honest, competent, responsible, accountable and responsive to stakeholders;
      (e) Raising the risk awareness of employees and providing employees with adequate training;
      (f) Setting up effective systems and controls to manage and control all material risks (including reputational risks) faced by the bank and to monitor compliance with all applicable laws, regulatory standards, best practices and internal guidelines; and
      (g) Having adequate policy and procedures in place to ensure that all disclosures to stakeholders are clear, accurate, complete, relevant, consistent and timely, and guided by the principles of ethics, integrity and transparency.
      July 2018