Exception Management for Malaysian SMEs: Meeting BNM RMiT Requirements
In Malaysia, the Bank Negara Malaysia (BNM) Risk Management in Technology (RMiT) framework has become a benchmark not only for financial institutions but also for fintech startups and SMEs working with regulated entities. RMiT emphasizes resilience, security, and governance, all areas where exceptions often occur.
Common Exceptions in Malaysian SMEs
- Reliance on third-party cloud services that don't fully align with RMiT standards.
- Incomplete multi-factor authentication (MFA) rollout.
- Patch delays due to vendor dependency.
Why SMEs Must Act
Compliance Pressure
Even if not directly regulated, SMEs providing services to banks or insurers face compliance pressure from partners. Without structured exception control, they risk losing contracts or reputational standing.
Best Practices
1. Centralized Log of All Security Exceptions
Capture owner, risk rating, and mitigation plan.
2. Risk Acceptance by Leadership
RMiT expects formal approval for unresolved risks.
3. Periodic Reviews
Exceptions must be re-evaluated against business and regulatory changes.
4. Vendor Accountability
Ensure cloud or IT partners provide documented compliance roadmaps.
Benefits
Competitive Advantage
By aligning exception management with RMiT, SMEs can not only reduce regulatory exposure but also signal credibility when bidding for financial or government projects.