CFSL Integrated Report 2025

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Introduction

Group Overview

Leadership

Strategy & Performance

Risk Management Report

Effective risk management is central to protecting what matters most – our people, our customers and our purpose. A robust risk management framework enables the Group to remain resilient, anticipate challenges, respond with agility and continue delivering inclusive, secure and reliable financial services. PROTECTING WHAT MATTERS, EMPOWERING WHAT’S NEXT Cim Finance’s approach to risk management is proactive and forward-looking, ensuring our frameworks evolve in line with changes in our operating environment. This discipline allows the Group to anticipate and stay ahead of emerging risks. This past year, our commitment to inclusive financing evolved from a strategic priority into a powerful catalyst for empowerment. In FY 2025, we broadened our reach to various demographics, including underserved segments, promoting financial access and contributing to broader economic resilience. In a year marked by changing market conditions and heightened digital risks, we adapted our approach to ensure continuity, security, and trust. We reinforced our risk posture to protect what matters most and future-proof our organisation and the interests of our stakeholders. Key initiatives included enhancing operational resilience, reinforcing our credit risk controls, and deepening our cybersecurity capabilities. Those drivers, combined with our business agility, ensured our services remained secure, reliable, and accessible to all, while supporting growth and financial inclusion.

FY 2025 - A year of inclusive growth and digital fortitude

EXPANDED FINANCIAL INCLUSION • Strengthened outreach and engagement with underserved segments, reinforcing our commitment to inclusive finance.

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ADVANCEMENTS IN DIGITAL TRANSFORMATION • Transforming customer engagement and operational efficiency: Implemented a series of strategic digital initiatives, including streamlining internal processes, enhancing compliance, and improving customer experience. Credit Risk Controls: Proactive and discipline risk management led to a measurable improvement in asset quality, reinforcing the resilience of our credit book. • Operational Resilience: Enhanced existing frameworks to ensure the continuity of critical operations. • Improved Risk Appetite Articulation: Aligned risk appetite with strategic objectives. FINANCIAL PERFORMANCE INDICATORS • Delivered strong financial results in 2025, with a 12.7% asset book growth and a robust capital adequacy ratio of 28.4%. Credit quality also improved, reflected in a lower NPL ratio and enhanced ECL models, underscoring the Group’s disciplined risk management and financial resilience. STRATEGIC OUTLOOK • Resilience and Agility: Positioned the Group to respond to evolving market conditions and digital threats. • Empowerment through Finance: Continued commitment to inclusive, reliable financial services. STRENGTHENED RISK MANAGEMENT POSTURE • Cybersecurity Resilience: Upgraded frameworks, and carried out regular penetration testing and employee awareness programmes. •

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