riSK manaGement orGanizational Structure
The Risk Management function in the Bank is conducted by the Risk Management Unit (RMU), which is led by the Risk Management Director.
The Bank’s Risk Management Unit structure is further explained in the Risk Management Section in this Annual Report.
CIMB NIAGAANNUAL REPORT 2019
ProFile oF riSK manaGement unit heaD
Legal basis and mechanism of appointment and dismissal of the Head of Risk Management Unit held by Risk Management Director follows the appointment and dismissal as well as term of office of the Board of Directors as disclosed in the Board of Directors’ report which is part of the Corporate Governance Report in this Annual Report.
vera handajani Risk Management Director A complete profile is available in the Board of Directors’ Profiles
Koei hwei lien Head of Retail Credit Risk Management
A complete profile is available in the Senior Executive’s Profiles
Julyus Wiantara tjhioe Head of Operational Risk Management (ORM)
A complete profile can be seen in the Executive Officers’ Profiles
Diva mahdi
Market Risk Management & Model Validation Head
Indonesian citizen, 37 years old Has served as Market Risk Management
& Model Validation Head at CIMB Niaga since 2019. Previously, he served as Market Risk Management Head at CIMB Niaga (2013 – 2019), Market Risk Head at Bank OCBC NISP (2010 – 2013), and Trading Risk Head at Bank Danamon (2008 –2010) He holds a Bachelor of Civil Engineering from Hogeschool ‘s-Hertogenbosch - The Netherlands (2003)
Sandi maruto
ALM Risk Management Head Indonesian citizen, 40 years old Has served as ALM Risk Management Risk Head at CIMB Niaga since 2015. Previously, he served as Country Head of Market &
Liquidity Risk at Standard Chartered Bank Indonesia (2011 – 2015), and Wholesale Risk Analytics Head at Bank Danamon Indonesia (2008 – 2011)
He holds a Bachelor of Civil Engineering from Institut Teknologi Bandung (2003), and Master of Management from PPM School of Management (2016) yulius Setiawan
Head of Risk Analytics &
Infrastruture
A complete profile is available in the Senior Executive’s Profiles
Wahdinie musmar
Head of Credit Assurance Testing, Wholesale & Commercial Credit Policy
A complete profile is available in the Senior Executive’s Profiles
riSK manaGement unit DutieS anD reSPonSiBilitieS
1. Monitor risk management strategy implementation recommended by the Risk Management Committee and approved by the Board of Directors.
2. Provide input to Board of Directors, among others, on developing Risk Management policies.
3. Monitor position or overall risk exposure (composite), for each risk type and each functional activity type.
4. Conduct stress testing to determine the impact of significant changes in external performance, liquidity and capital conditions.
5. Conduct periodic reviews of the Risk Management process.
CIMB NIAGAANNUAL REPORT 2019
6. Review proposed new activities and/or products proposed or developed by particular units. The assessments focuses primarily on the Bank’s ability to conduct the new activities and/or products, including the systems and procedures used and their impact on overall risk exposure.
7. Provide recommendations related to the amount, or maximum risk exposure that the company can have to the RTU and to the Risk Management Committee, in accordance with their authority.
8. Evaluate model accuracy and validity of the data used to measure risk where the company uses the model for internal purposes.
9. Prepare and submit risk profile reports to the Board of Directors, Risk Management Committee and Sharia Supervisory Board (for SBU Risk Profiles) periodically or at least quarterly.
10. Monitor of risk management policies implementation including developing procedures for identifying, measuring, monitoring and controlling risk methods.
11. Review propos new strategic business lines and may have a significant effect on the Financial Conglomerate risk exposure.
12. Conduct duties as an Integrated Risk Management Unit in order to implement the Integrated Risk Management.
13. Provide input to the Integrated Risk Management Committee, in the framework of developing and refining the Integrated Risk Management Policy.
14. Prepare and submit Integrated Risk Profile reports periodically to the Integrated Risk Management Committee.
15. Provide information to Integrated Risk Management Committee on matters that need to be followed up related to the Integrated Risk Management evaluation results comPetency DeveloPment ProGram anD ProFeSSional certiFication For the riSK manaGement unit memBerS
In 2019, the Risk Management Unit (RMU) comprised 137 employees.
To support the RMU competency development, during 2019, the RMU head and staff participated in training programs including:
no training/Workshop/conference/Seminar organizer location Date
1 Future Data Scientist Programme : Level 1 CAD'S Bogor, Indonesia 14January 2019
2 Risk Management Certification Program Level 1 RDS Jakarta, Indonesia 24 January 2019 3 Risk Management Certification Refreshment Program Banker Association
For Risk Management (BARA)
Jakarta, Indonesia January, March and April, July and December 2019
4 Financial Statement Analysis MARKSHARE TRAINING Jakarta, Indonesia 5 February 2019
5 Center of Data Science [CADs] Level 2 CAD'S Kuala Lumpur,
Malaysia
25 March 2019
6 PSAK71 Impairment Deep Dive in Risk Management perspective
BARA Jakarta & Bali,
Indonesia
28 March & 27 June 2019
7 Business Intelligence CIMB GROUP Jakarta, Indonesia 8 April 2019
8 Sustainability Finance Training Program Indonesia’s Banking Development Institute (LPPI)
Tangerang, Indonesia
10 April & 2 May 2019
9 Audit Command Language (ACL System) BINA ANALITIK RADHIKA Tangerang, Indonesia
13 May 2019
10 Sertifikasi Basic Syariah Banking KARIM CONSULTING
INDONESIA
Jakarta, Indonesia 15 May 2019
11 Center of Data Science [CADs] Level 2 CAD'S Kuala Lumpur 27 May 2019
12 Business Learning Session : Tableau Discovery Workshop CIMB Niaga Jakarta, Indonesia 26 June 2019
13 Digital Leadership Series Bayu Adi Persada & Hiro
Wardhana
Jakarta, Indonesia 11 July & 10 October 2019
14 Sustainability Finance Training Program FABA Jakarta, Indonesia 6 August 2019
CIMB NIAGAANNUAL REPORT 2019
no training/Workshop/conference/Seminar organizer location Date
15 Project Transformation Leadership Deloitte Jakarta, Indonesia 18 September 2019
16 Center of Data Science [CADs] Level 3 CAD'S Bogor, Indonesia 30 September 2019
17 Lunch n Learn : Interest Rate Risk in Banking Book FIS ADVISORY Jakarta, Indonesia 23 Oktober 2019
18 Certified Financial Planner YSPKI Jakarta, Indonesia 3 November 2019
19 Risk Management Certification Program Level 2 RDS Jakarta, Indonesia 28 November 2019 20 3D Series (201, 301, Online) : 3D - Internet of Things David Hermawan Jakarta, Indonesia 9 November 2019 21 Risk Control Unit (RCU) /Designated Compliance and
Operational Risk Officer (DCORO) Forum 2019, with topics as follows:
• Operational Risk Management Tools
• Update on ORM Framework
• SCAP P &P
• Data Classification & Labeling
• AML Risk Rating
CIMB Niaga Jakarta, Indonesia Monthly
riSK manaGement certiFication
Total number of Bank employees who have obtained risk management certification is presented in the table below:
level employees
mandatory rmc* certified % total employees
rmc certified ** %
1 1,377 1,331 97% 3,223 234%
2 452 443 98% 778 172%
3 241 238 99% 289 120%
4 64 61 95% 64 100%
5 10 10 100% 10 100%
Total 2,144 2,083 97% 4,364 204%
*) Number of employees mandatory have certification
**) Total number of mandatory or non-mandatory employees who have received certification
BOARD OF DiRECtORs’ PERFORmAnCE AssEssmEnt OF thE Risk mAnAGEmEnt unit
CIMB Niaga continuously reviews the effectiveness of the RMU performance. The RMU performance assessment can be viewed through others indicators such as asset quality and losses on operational risks. Although the Bank still experienced challenges in 2019, overall asset quality indicators improved. The Bank’s losses from Operational Risk in 2019 were still within the Bank’s established risk appetite. In addition, the bank successfully completed risk infrastructures to support the bank’s future healthier business growth.CIMB NIAGAANNUAL REPORT 2019