ENTERPRISE RISK MANAGEMENT
Management of Strategic Risk
Strategic risk refers to Bursa Malaysia’s exposure to internal and external events that can either support or prevent Bursa Malaysia from achieving its objectives. In order to support Bursa Malaysia’s aspiration to become the leading ASEAN marketplace, the Strategic Risk unit monitors the developments of the competition landscape. Key risks noted from the developments of competitors include the aggressive launch of new products and services, strategic alliances via partnerships with or acquisition of other exchanges, and the emerging market disrupters from Financial Technology (Fintech) services such as bitcoin, robo advisory and algorithm trading. Such potential risks may be escalated for deliberation at both the management and risk committee levels, with the view of taking into consideration such concerns at the next review of the business plan.
In addition, the Strategic Risk unit also monitors the delivery of high impact projects to assess their implications on Bursa Malaysia’s progress to achieve its strategic objectives as outlined in the current business plan. The risk assessment of such projects is conducted before the projects are implemented as well as during the implementation stages. As these projects support Bursa Malaysia to achieve its strategic objectives as well as mitigate the potential effects from competition, it is important to identify any potential execution risks during the implementation of these projects and address such risks promptly and appropriately.