##s has recently made headway in sustainable finance through an inaugural issuance of sustainability sukuk. the sukuk has been well received by the market, oversubscribed by more than 3 times, with the proceeds going towards supporting the government ’ s sustainability goals by financing smes involved in green projects identified under the green technology master plan malaysia. other dfis are also preparing to issue more sustainability sukuk which will also deepen the sustainability bond market in malaysia. this development augurs well for the creation of a vibrant fundraising market that will better support the economic recovery and financing of sustainable and impact projects. frameworks are in place to facilitate the adoption of sustainable finance by fis ( climate change and principle - based taxonomy, performance measurement framework ( pmf ) and value - based intermediation ( vbi ) ) my third point is that various frameworks are now being put in place to empower dfis in sustainable finance, and dfis can already step up efforts in this space. for example, bnm ’ s climate change and principle - based taxonomy facilitates all fis to be part of the driving force that promotes orderly transition towards a low - carbon future. other frameworks focus on creating incentives that would shape dfis ’ behaviour to be more in tune with their developmental roles. the adage “ what gets measured gets managed ” reflects the 3 / 5 bis central bankers'speeches importance of building a structured and holistic measurement framework for dfis. this will support dfis to pursue national economic and social well - being while simultaneously support an orderly transition of the economy towards achieving sustainability goals. in this, it is particularly pertinent for dfis to advocate accountability, transparency and efficiency since dfis are also public institutions. towards this, dfis that are part of the value based intermediation or vbi community are encouraged to apply impact - based disclosure on value - based practices and financial solutions contributing to the triple bottom line ( people, planet and prosperity ). institutions are required to disclose an optimal set of information to stakeholders with an objective to generate intended market discipline and promote stakeholder activism. similarly, the performance measurement framework or pmf is anchored on the concept of additionality creation by dfis. additionality is defined as the positive impact attributable to dfis beyond purely commercially - driven considerations, and this resonates well with the intent of sustainable finance. under the framework, an achieving dfi

financial crisis. prioritizing risk management is even more important for insurance companies. this is due to the fact the core activity of insurance involves risk - taking and risk - transfer, and that insurance risks are usually long - tailed. under the risk based supervisory framework, corporate governance and risk management has always been an integral part of bank negara ’ s supervisory assessment of insurance institutions. to form a supervisory view of an institution, bank negara evaluates how an institution manages the inherent risks within its significant areas of activity. the bank also assesses the quality of the oversight and control functions and tests the resilience of the institutions to different risks under stress conditions. therefore, it is critical for an insurance company ’ s internal policies and control mechanisms to be effective in shaping the desired risk profile. this risk profile should commensurate with the level of capital and capabilities of the company. the bank also initiated, in 2008, the financial institutions directors ’ education ( fide ) program to promote good corporate governance and risk management practices. feedback from the directors who attended the program revealed a deeper appreciation of the importance of sound corporate governance and active engagement of the board in risk management and strategic issues. we have also observed that the practices of financial institutions in malaysia showed evidence of strengthened risk governance culture. in particular, we observed higher commitment by board members, strengthened authority of the chief risk officer ( cro ), and more comprehensive oversight of risks. it is important to recognize that risk management should not be a “ black - box ” discussion that is confined to high level management. risk management should be an enterprise - wide process involving all levels of business functions. the top level management is responsible for putting in place a well - defined risk governance framework and formulating the appropriate risk strategies. at the operational level, the roles of the business units are to ensure that key risks are appropriately identified, assessed and mitigated. we are all aware, therefore, that risk management is a dynamic and iterative process. risk management is not a one - off exercise. instead, it is a continuous cycle. hence, there should be genuine awareness, ownership and accountability of risks throughout the company. every employee should see himself or herself as a risk manager! it is exciting to see the breath of the topics for this conference. and it is even more encouraging to see risk experts from different countries like the united kingdom, hong kong, singapore, philippines and malaysia coming together to exchange information and experience. i am also pleased to