KENANGA ANNUAL REPORT 2020

298 5 1 2 3 4 6 7 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 50. FINANCIAL RISK MANAGEMENT (CONT’D.) (c) Liquidity risk (cont’d.) (ii) Maturity analysis of financial liabilities on an undiscounted basis (cont’d.) Bank 2019 Up to 1 month RM’000 >1 to 3 months RM’000 >3 to 6 months RM’000 >6 to 12 months RM’000 >1 year RM’000 Non specific maturity RM’000 Total RM’000 Financial liabilities Deposits from customers 2,300,230 1,006,768 577,606 133,138 261,504 - 4,279,246 Deposits and placements of banks and other financial institutions 311,762 342,878 - - - - 654,640 Derivative financial liabilities 57 1,911 1,765 9,683 - - 13,416 Balance due to clients and brokers 304,880 - - - - - 304,880 Borrowings - 2,829 2,829 5,659 71,849 - 83,166 Other liabilities balances 75,902 67,116 10,064 4,644 31,238 116,207 305,171 Total undiscounted financial liabilities 2,992,831 1,421,502 592,264 153,124 364,591 116,207 5,640,519 (d) Operational risk Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or resulting from external events. Operational risk is managed through an effective operational risk management framework which include development of policies, processes and procedures for managing operational risk in the Group, independent review of the risk management function by internal audit and oversight by the management and Board of Directors. The operational risk management processes include identifying and assessing operational risks of the Group and operational risk loss data collection to track the factual information which can assist the organisation and business and support units to effectively understand where their real risks exist, identify control weaknesses, underlying causes and introduce controls to strengthen the weaknesses. Any actual, near-miss or potential losses from any operational risk loss events are to be reported to Management.