Kuala lumpur: The Royal Commission of Inquiry (RCI) report on Lembaga Tabung Haji (TH) calls for systemic reforms and sustained discipline in internal processes. Professor at the Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), Prof Datuk Dr Norman Mohd Saleh, emphasized the importance of enhancing check-and-balance mechanisms within the haj fund management institution to scrutinize high-risk decisions and protect depositors' interests. According to BERNAMA News Agency, Prof Datuk Dr Norman Mohd Saleh highlighted the necessity for risk warnings from the Audit Committee (AC) and Risk Management Committee (RMC) to be mandatorily integrated into the Board of Directors' (BOD) decision-making process. He pointed out that the existing standard operating procedures (SOPs) often treat risk warnings as mere advice, which can be ignored. He stressed the need for the RMC to have greater authority in influencing strategic and investment decisions to prevent management override practices. Additi onally, he suggested that TH should be subject to external supervision by Bank Negara Malaysia (BNM) to assess liquidity risk and capital adequacy in fund management. Prof Datuk Dr Norman further noted that the appointment process through the Nomination and Remuneration Committee (NRC) should be transparent and free from executive or political influence. He underscored the importance of shifting regulatory mechanisms from a reactive to a proactive approach to detect weaknesses early. He also advocated for shared responsibility between management and the BOD for all decisions made. Meanwhile, Associate Professor Dr Mohd Hafizuddin Syah Bangaan Abdullah, a lecturer in Finance and Risk Management at UKM, emphasized the proactive implementation of risk management before major investment decisions. He recommended establishing clear investment tolerance limits, conducting stress testing, and preparing documented exit strategies. He also proposed a red-flag escalation mechanism for high-impact decisions and suppor ted separating the RMC from the AC to focus on risk foresight and compliance, respectively. Dr. Abdullah also supported the RCI's recommendation to avoid appointing active politicians as chairpersons or board members of TH and its subsidiaries. He stressed the importance of monitoring key indicators, such as the audited financial position and quality of reporting, while linking management remuneration to long-term performance adjusted for risk. The RCI report on TH, released on July 29, highlighted weaknesses in management and governance between 2014 and 2020, offering 25 recommendations for improvement. A special sitting of the Dewan Rakyat was convened to discuss and debate the report.