Operational Risk

Objective of Operational Risk Management

The objectives of operational risk management at BPR Bank are as follows:

Define the structure and responsibilities in the management of Operational Risk.

Identify the risk events existing in the processes carried out by the institution.

Establish the risk profile and ensure that controls are adjusted as the culture of prevention of operational risks develops.

Establish the methodologies for identification, registration and valuation of operational risks through the different units.

Establish the methods to record operational risk events and losses that occur.

Establish that each loss event must be captured in the databases that are defined for those purposes.

Establish a system for continuous monitoring of risks and updating of the management system in accordance with best practices.

Ensure that the risk is controllable and minimized permanently.

Establish a requirement for continuous training for personnel on the importance of Operational Risk.

Operational Risk Strategy and Methodology

Operational Risk Management is a logical and systematic method that, based on the context in the processes, allows identifying, analyzing, evaluating, controlling, monitoring and communicating the risks associated with any activity or task, seeking to obtain opportunities for improvement in the processes, as well. as with the prevention or mitigation of losses.

For the proper implementation of the strategy and methodology of operational risk management, the Operational Risk Unit establishes a schedule of annual self-evaluations of the bank’s documented processes. Based on which it plans a series of workshops (work meetings) with process owners, sub-process managers and other participants that are necessary to facilitate the implementation of the operational risk methodology.

Main Achievements of Operational Risk Management

With the implementation of operational risk management, the bank has obtained the following achievements:

Updated operational risk management framework, aligned with regulation and best practices.

Development of self-evaluations of the bank’s processes, identifying opportunities for improvement in the activities carried out in the bank, ensuring the materialization of operational risks.

Periodic reviews and audits of operating procedures are carried out regularly to strengthen efficiency and control, and to neutralize identified weaknesses.

Improvement in the risk culture and internal control of the bank through training for all bank personnel.

Adequate maintenance programs and contingency plans are maintained for business continuity, including the different technological applications.

Design and implementation of an automated system to collect events and incidents in terms of operational risk.

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