[OR] [BI] [E3] [CBS] [4] [MD] Map Dependency

CBS-4 SME and Corporate Financing Services

Introduction

This chapter sets out the detailed mapping of interconnections and interdependencies for CBS-4 SME and Corporate Financing Services of Bank Islam Malaysia Berhad. In line with operational resilience expectations outlined in the 2025 BNM Discussion Paper on Operational Resilience, the objective of this mapping is to identify the critical resources (people, processes, technology, and third parties) that support each Sub-CBS, and to understand how these components interact to deliver end-to-end SME and corporate financing services.

The mapping goes beyond listing assets. It analyses how disruptions in one component (e.g., credit systems, Shariah review, collateral valuation, legal documentation, or payment rails) could propagate across the service chain.

This enables Bank Islam to identify concentration risk, single points of failure, and external dependencies that may impact its ability to remain within defined impact tolerances under severe but plausible scenarios.

Table P2: Map Dependency for CBS-4

Sub-CBS Code	Sub-CBS	Dependency Type	Dependency Detail (What/Who is involved)	Connectivity (How it connects/interacts with CBS or other components)
4.1	Customer Onboarding and Financing Application Initiation	People	Relationship Managers (RM), SME/Corporate Banking Officers, Customer Due Diligence (CDD) team	RMs capture financing requirements and initiate application; CDD validates customer identity before credit assessment begins
		Process	KYC/CDD procedures, AML screening, onboarding workflow	Feeds verified customer profile into credit risk systems and document management systems
		Technology	Core Banking System, e-KYC platform, AML screening system, CRM	Interfaces withthe credit assessment module and the document repository
		Third Party	e-KYC vendors, identity database providers (e.g. NRIC/SSM verification), and credit bureaus	External verification feeds into the onboarding decision and risk profiling
4.2	Credit Assessment and Risk Evaluation	People	Credit Analysts, Risk Management Department, Sector Specialists	Evaluate financial statements and assign internal risk rating; output submitted for approval
		Process	Credit scoring models, financial spreading, and risk grading methodology	Results determine financing structure, pricing and approval route
		Technology	Credit Risk Rating System, financial analysis tools, data warehouse	Pulls customer data from onboarding; pushes risk grade to approval workflow
		Third Party	Credit reporting agencies (e.g. CTOS Data Systems), external auditors’ reports	External data integrated into risk assessment and early warning framework
4.3	Credit Approval and Governance	People	Credit Committee, Senior Management, Board Credit Committee	Approves financing within the delegated authority matrix
		Process	Delegated authority framework, Shariah review checkpoints	Approval outcome triggers documentation and facility setup
		Technology	Workflow approval system, Board reporting portal	Tracks approval status; connects to document preparation system
		Third Party	External legal counsel (for large corporate deals)	Advises on complex governance structures and syndicated arrangements
4.4	Financing, Structuring and Documentation	People	Product team, Legal Department, Shariah Secretariat	Structure Shariah-compliant contracts (e.g. Murabahah, Ijarah, Tawarruq)
		Process	Standard documentation templates, Shariah compliance review	Approved terms converted into executable agreements
		Technology	Document Management System (DMS), contract generation system	Finalised contracts uploaded and linked to core banking
		Third Party	External solicitors, Stamp Duty Office	Perfection of legal documentation before disbursement
4.5	Facility Setup and Limit Activation	People	Operations team, Financing Operations Unit	Configure facility parameters and limits in the core system
		Process	Limit setup checklist, pre-disbursement verification	Ensures documentation and collateral are perfected before activation
		Technology	Core Banking System, limit management module	Activates facility; connects to disbursement and monitoring modules
		Third Party	Collateral registry (e.g. Companies Commission of Malaysia)	Charge registration confirmation before activation
4.6	Financing Disbursement and Payment Execution	People	Operations officers, Treasury (if FX involved)	Execute disbursement according to approved terms
		Process	Disbursement authorisation workflow, dual control	Ensures compliance before funds release
		Technology	Core Banking, payment gateway, RENTAS/IBG interface	Connects the financing account to the payment rails and the customer account
		Third Party	Payments Network Malaysia, correspondent banks	External payment infrastructure for fund transfer
4.7	Trade and Working Capital Financing Processing	People	Trade Finance officers, RM, Shariah advisors	Process LC, BG, trade Murabahah and working capital lines
		Process	Trade operations workflow, SWIFT messaging procedures	Links to disbursement, collateral and monitoring functions
		Technology	Trade Finance System, SWIFT interface	Interfaces with core banking and external counterparties
		Third Party	Foreign banks, SWIFT network	Facilitates cross-border trade transactions
4.8	Financing Account Maintenance and Servicing	People	Customer Service, Operations Support	Manage instalments, restructuring, and customer queries
		Process	Instalment recalculation, variation management	Updates flow into monitoring and risk systems
		Technology	Core Banking, Customer Portal, Statement engine	Provides real-time account data to customers and monitoring teams
		Third Party	IT managed service providers	Ensure system uptime and data integrity
4.9	Collateral and Security Management	People	Collateral management unit, Legal team	Maintain security documents and valuations
		Process	Periodic valuation review, margin monitoring	Feeds into early warning and recovery processes
		Technology	Collateral management system, valuation database	Interfaces with risk and recovery systems
		Third Party	Independent valuers, land office	External valuations and charge registration
4.10	Monitoring, Early Warning and Portfolio Management	People	Portfolio Management team, Risk Analytics	Monitor covenant breaches and delinquency
		Process	Early Warning Indicators (EWI), stress testing	Triggers remedial management escalation
		Technology	Risk dashboard, data analytics tools	Aggregates data from core banking and credit systems
		Third Party	Industry data providers	External macro indicators inform stress scenarios
4.11	Recovery, Remedial and Legal Management	People	Remedial Management Unit, Legal Counsel	Handle restructuring, litigation and enforcement
		Process	Recovery strategy, restructuring framework	Activated upon breach or default detection
		Technology	Case management system	Linked to collateral and credit files
		Third Party	External lawyers, auctioneers, and insolvency practitioners	Execute enforcement and asset disposal
4.12	Regulatory Reporting and Shariah Governance Oversight	People	Compliance, Regulatory Reporting team, Shariah Committee	Oversee regulatory submissions and Shariah compliance
		Process	Regulatory reporting cycle (BNM returns), Shariah audit	Ensures service remains compliant and within tolerance
		Technology	Regulatory reporting system, MIS platform	Consolidates data from all Sub-CBS modules
		Third Party	Bank Negara Malaysia, external Shariah auditors	External oversight and supervisory reporting obligations

The dependency mapping for CBS-4 SME and Corporate Financing Services demonstrates that the delivery of SME and corporate financing at Bank Islam is highly interconnected across front-office, risk, operations, technology infrastructure, Shariah governance and multiple third parties. In line with operational resilience principles, this structured mapping highlights potential concentration risks, critical third-party dependencies (e.g. payment networks, credit bureaus, legal firms), and technology integration points that could threaten service continuity under severe but plausible disruption scenarios.

By maintaining this live dependency map, Bank Islam strengthens its ability to test scenarios, assess impact tolerances, prioritise recovery strategies, and enhance cross-functional coordination. This forward-looking approach ensures that SME and corporate customers continue to receive essential financing services even during operational stress, reinforcing the Bank’s resilience, governance discipline and Shariah-compliant service integrity.

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Implementing Operational Resilience for Bank Islam: Aligning with BNM and Global Best Practices

[OR] [BI] [E3] [CBS] [4] [MD] Map Dependency

Operational Resilience Certified Planner-Specialist-Expert

CBS-4 SME and Corporate Financing Services

Introduction

Table P2: Map Dependency for CBS-4

Comments:

Implementing Operational Resilience for Bank Islam: Aligning with BNM and Global Best Practices

[OR] [BI] [E3] [CBS] [4] [MD] Map Dependency

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Operational Resilience Certified Planner-Specialist-Expert

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Introduction

Table P2: Map Dependency for CBS-4

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CBS-4 SME and Corporate Financing Services