| CIM FINANCE. INTEGRATED REPORT 2022 64 1.1.1. RISK GOVERNANCE Recognising that good risk management goes hand in hand with strong governance, Cim Group has a well-established risk governance structure based on the three lines of defence approach, which facilitates the identification and escalation of risks, whilst providing assurance to the Board. Our governance structure is supported by an active and engaged Board of Directors and a dedicated Risk Management Team, which operates independently of the business units. The Chief Risk Officer reports directly to the Chairman of the Risk Management Committee of the Board. 1.1.2. RISK POLICIES AND PROCEDURES At the heart of the overall Enterprise RiskManagement framework lie key policies, standards, guidelines, processes and procedures. These policies and procedureswhich support the riskmanagement framework provide guidance to the business on themanagement of eachmaterial risk. The policies are reviewed on an annual basis, or as and when required, to cater for changes in the business operating environment, newproducts, best practice approach and regulatory requirements. All relevant documents are accessible to the staff through a policy portal. 1.1.3. RISK APPETITE In pursuing its strategic objectives and upon evaluation of threats and opportunities, CFSL has defined a risk appetite statement that sets out the amount of risk we can afford to take, need to take and prefer to take in achieving our objectives. The Risk Appetite, along with the risk tolerance and limits, have been reviewed during the year to take into consideration the prevailing economic environment. These are independentlymonitored by the RiskManagement Team, who then reports themto the RiskManagement forums and to the Board’s Risk Management Committee. 1.2. RISK APPETITE PILLARS The articulation of risk appetite levels for CFSL is founded on the following pillars: Capital Adequacy Portfolio and Credit Risk Liquidity and Funding Risk Market Risk Operational Risk Reputational Risk IT and Cybersecurity Risk Legal and Compliance Risk Business / Strategic Risk RISK MANAGEMENT REPORT
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