65 I N T E G R A T E D R E P O R T 2 0 2 1 R I S K M A N A G E M E N T REBUILDING 2022, AND BEYOND, TOGETHER As the COVID-19 pandemic continues to evolve within most economies globally, its unprecedented consequences have taken a serious toll on the Mauritian economy. Beyond the undeniable impacts, such as demand and supply chain shocks and rising prices, the closure of businesses has affected overall credit lending for certain sectors of the economy, putting thousands of people out of job and significantly reducing their income and purchasing power. It is therefore critical to continue ensuring that risk is adequately assessed, classified and measured. Cim Finance provides solutions to distressed clients in a timely manner, helping to contain the build-up of problem assets, and thus minimising and mitigating any cliff effects where possible. We also recognise that we need to continue playing our part in rebuilding our economy, as well as supporting our communities and society at large. As we continue to operate in these uncertain times, our primary obligation remains meeting customer needs to the best of our ability, within acceptable risk management principles, within our risk appetite, in line with our strategic objectives and in adherence to prevailing laws and regulations. From a prudential perspective, Cim Finance will take the following measures in order to properly manage its credit risk: • pursue our ongoing efforts to review the credit scorecards, internal policies, prudential limits and set new key risk indicators in line with the changing and challenging business environment; we also aim to make use of advanced analytical capabilities, while ensuring an effective warning process is in place; • continue to allocate exposures to the appropriate IFRS 9 stages and use all relevant information to determine expected credit losses; we also intend to continue ensuring overlays are directionally consistent with macroeconomic scenarios, given the current level of uncertainties; • enhance the IFRS 9 ECL models, and review the system, processes and controls against our objectives to sufficiently automate and streamline the processes to deliver reliable results; • reinforce the stress-testing framework to evaluate the potential effects of a set of specified changes in risk factors on Cim Finance’s financial condition, corresponding to exceptional but plausible events. A few other planned initiatives include, amongst many others: • To simplify and streamline our business processes through digitalisation to increase our efficiency, while maintaining a robust control environment enabled by Robotic Process Automation and the implementation of new core lending system and other system tools. This will also foster the development of innovative products and services that will help clients and unlock future growth; • To extend the deployment of a tailored Risk and Control framework across specific business units and continue the fraud monitoring efforts to identify early warning signals of potential fraud; • To further strengthen our cyber-resilience owing to greater digital adoption and staff mobility with better preventive & detective mechanisms through reliant & trustworthy systems, as well as deliver continuous cyber education and training to employees; • To strengthen our policy governance framework to ensure long-term business sustainability and compliance with evolving laws and regulations; • To continuously refine and evolve business continuity practices in the light of existing events to ensure contingency plans are updated and sufficiently tested.
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