CFSL Integrated Report 2025

RISK MANAGEMENT

94

Corporate Governance

Statutory Disclosures

Financial

PORTFOLIO & CREDIT RISK

Risk Appetite and Strategic Alignment In line with our strategic objectives, following an assessment of our prevailing threats and opportunities, Cim Finance has articulated a clear risk appetite statement that defines the level of risk we are willing to accept, manage, and prefer in pursuit of sustainable growth. This statement serves as a cornerstone for balancing risk and reward across financial, operational, and reputational dimensions. While our approach focuses on minimising our exposure to adverse risks, we recognise that taking measured risks is essential to achieving long-term objectives. Throughout the year, we reviewed and recalibrated our risk appetite, tolerance, and limits to reflect the evolving economic environment. These parameters are independently monitored by the Risk Management team and reported to the Risk Management Forums and the Risk Management Committee, ensuring robust governance and oversight. Cim Finance’s risk appetite framework is anchored on the following pillars:

LIQUIDITY & FUNDING RISK

CAPITAL ADEQUACY

MARKET RISK

OPERATIONAL RISKS

TECHNOLOGY & CYBERSECURITY RISKS

LEGAL AND COMPLIANCE RISK

Risk Policies and Procedures Our Enterprise Risk Management framework is composed of comprehensive policies, standards and guidelines that define minimum control requirements across the organisation. These policies serve as a cornerstone for consistent risk management practices and are reviewed annually–or sooner if necessary–to reflect changes in the business environment, regulatory developments, new products, and industry best practices. All approved policies and supporting documents are made easily accessible to our employees through our online policy portal, promoting transparency and adherence across all business units.

STRATEGIC & BUSINESS RISKS

REPUTATIONAL RISK

ESG RISKS