CFSL Integrated Report 2025

RISK MANAGEMENT

92

Corporate Governance

Statutory Disclosures

Financial

Our Risk Management Framework The Group operates in a dynamic environment, exposing it to a range of risks that could affect its financial performance and stability. Cim Finance’s Enterprise Risk Management (ERM) framework was designed as a structured and consistent approach for identifying, assessing, managing, and monitoring risks across its various lines of business. By embedding the ERM framework into every facet of the organisation, we ensure that the Group is well-positioned to respond to both opportunities and challenges. Risk Governance Recognising that effective risk management requires a strong governance foundation, the Group has implemented a robust risk governance structure based on the ‘three lines model.’ This approach enables the timely identification and escalation of risks, while 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 Chairperson of the Risk Management Committee. Roles and Responsibilities – Three Lines model To maintain a robust control environment, the Group has adopted the three lines model. The core principle of this is that risk management must be embedded within the business to be truly effective. This ensures clear risk ownership, with each line responsible for identifying, managing, and mitigating risks at their respective levels.

BOARD

BOARD SUB-COMMITTEES

MANAGEMENT COMMITTEE / RISK FORUMS

Support and Challenge

Validate and Challenge First line & Second line

REGULATORS

EXTERNAL AUDIT

First Line Risk & Control Ownership

Second Line Risk Oversight (Risk & Compliance Functions)

Third Line Risk & Control Ownership

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Management of Business Units Management Committee Forums (MANCO)

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Risk Management Function

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Internal Audit Function

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Compliance Function