CFSL Integrated Report 2022

CIM FINANCE. INTEGRATED REPORT 2022 | 71 RISK PRIORITIES KEY ACTIONS WE ARE TAKING MACROECONOMIC ENVIRONMENT Considering the challenging economic environment which has an impact on our book, we constantly monitor and manage the performance and quality of the credit portfolio and by achieving the targeted risk-return profile. • We regularly discuss the macroeconomic environment and we undertake scenario analysis and stress tests to understand how our business performs. • We continue to take appropriate measures to manage credit risk exposures by reviewing the risk appetite, credit risk policies, reviewing internal limits, credit scorecards and by providing support to impacted customers in order to maintain risk at an acceptable level. • We maintain a prudent credit loss provisioning approach with appropriate provisioning coverage by keeping adequate ‘buffers’ to stay in a strong position as new risks or uncertainties arise. • We are strengthening our modelling capabilities through the development/ refinement of credit models to enhance the accuracy and predictive power of the models whilst making adjustments to reflect the ongoing economic downturn risk. • We maintain a set of key risk metrics, including early warning signals, which are closely monitored and appropriate actions taken. • We continue to improve our operational efficiency, whichwill ensure that we are ablemanage our costs, while enabling faster and better quality decision-making. CONTINUOUSLY EVOLVING BUSINESS PROCESSES AND HUMAN CAPITAL RISKS With the constant evolution of business operations to adapt to macroeconomic changes, customer expectations and ongoing system improvements, business processes are continuously changing, requiring time and effort to not only update salient documentation to align with governance expectations and regulatory obligations, but also to keep staff abreast of new changes to processes to ensure compliance. The aftermath of Covid-19 has put employees’ physical, mental, social and financial health into the spotlight. Like most organisations, we are experiencing increasing human capital risks. • We have embarked on a company-wide project to refresh process documentation to bring about better consistency and effectiveness in the way we do business. In doing so, we aim to streamline complex processes in order to enhance simplicity and transparency in the way our people operate, diminish operating costs and decrease turnaround times, thus resulting in an improved client experience. • We have identified champions across all key functions of the business to ensure continuity in the documentation effort, as well as to empower our staff to actively participate in the maturity progress of our governance framework. • We have implemented an internal process approval guideline with an internal policy portal to standardise the approach to process development and facilitate their dissemination. • Our control functions continuously ensure oversight of all policies and processes to ensure various weaknesses are proactively identified and addressed with suitable preventive or detective controls. • We have launched a recognition programme and are providing the necessary support to our employees with the aim of improving employee engagement and morale. • Training programmes have been enhanced for the purpose of technical upskilling, enhancing soft skills, increasing digital awareness, improving wellness and wellbeing, and ensuring compliance with policies and regulatory requirements, thus building more resilience into our workforce. 4. OUR CURRENT RISK PRIORITIES

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