Bursa Malaysia • Annual Report 2013
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• Targeted employee engagement activities to foster
camaraderie as well as create a harmonious and conducive
working environment; and
• More strategic employer-visibility initiatives, aimed at
building employer branding among potential entry-level and
professional-level employees.
ii.
All areas of human resources are essential to mitigate talent
management risks and the outcomes of all initiatives taken are
measured and monitored to determine the effectiveness and
adequacy to tackle any area of risk.
Competition risk
i.
To continue reinforcing Bursa Malaysia’s position as a competitive
marketplace, we implemented various business initiatives in
2013 to create a more facilitative trading environment, offer
more tradable alternatives, reshape our market structure and
framework, and become a regional marketplace with global
access.
Counterparty credit risk
i.
Bursa Malaysia has set in place robust risk management
processes and procedures to manage counterparty/settlement
risks and prevent any systemic impact on the market. In the
area of managing counterparty/settlement risks, Bursa Malaysia
Securities Clearing Sdn Bhd and Bursa Malaysia Derivatives
Clearing Berhad act as the clearing houses for equities and
derivatives trades respectively. These processes and procedures
include:
• Daily mark to market positions, initial and variation margin
requirements and collateral management;
• Monitoring capital requirements and adequacy;
• Managing credit exposures via price, trading, single client,
equity and position limits;
• Monitoring the financial health of the clearing settlement
banks via the Risk Weighted Capital Ratio (RWCR) and
credit ratings. The concentration risk is also monitored
based on the Trading Clearing Participant’s (TCP) or Clearing
Participant’s (CP) total trade settlement with the relevant
clearing settlement banks;
• Maintenance and stress-testing adequacy of the Clearing
Guarantee Fund (CGF) and the Clearing Fund for equities
and derivatives trading respectively; and
• Conducting default drills to test the effectiveness of relevant
rules and procedures.
ii.
In 2013, there were no settlement defaults by any TCP or CP, and
neither the CGF nor the Clearing Fund was called upon.
iii. We will continue to review and enhance the above processes and
procedures in accordance with best practices and standards to
ensure they are viable and robust.
Regulatory risk
i.
The discharge of our regulatory functions is to ensure that our
market continues to operate in an orderly and fair manner with
sound investor protection. In regulating the market we adopt a
five-pronged approach comprising development, supervision,
engagement, enforcement and education. We also adopt a
risk-based approach in regulating the market and seek to ensure
that the key risk areas are identified, monitored and managed
effectively.
7. Performance Measurement
a.
Key Performance Indicators (KPIs), which are based on the Corporate
and Divisional Balanced Scorecard approach, are used to track and
measure staff performance.
b. Yearly employee engagement surveys and customer satisfaction
surveys are conducted to gauge feedback on the effectiveness and
efficiency of stakeholder engagement for continuous improvement.
8. Staff Competency
a.
Hiring and termination guidelines are in place while training and
development programmes are conducted to ensure that staff are
competent and kept up to date with the necessary competencies
to carry out their respective duties towards achieving the Group’s
objectives.
9. Conduct of Staff
a.
A Code of Ethics is established for all employees, which defines the
ethical standards and conduct of work required at Bursa Malaysia.
b. Bursa Malaysia has a stand-aloneWhistleblower Policy and Procedures
(WPP) to provide an avenue for staff or any external party to report
any breach or suspected breach of any law or regulation, including
business principles and the Group’s policies and guidelines, in a safe
and confidential manner.
Statement on Internal Control and Risk Management
Governance
