2. RISK MANAGEMENT COMMITTEE (RMC)
RMC was established to ensure that the risk management framework provides adequate protection against all BCA risks.
• Results of studies regarding total risk exposure faced by BCA and its impact.
• Assessment of BCA’s capital adequacy in facing the risk of losses that arise using various stress testing scenarios.
• Proposal for developing risk measurement methodologies, contingency plans in abnormal condition (worst cast scenario), and other methods related to BCA risk management.
• Matters requiring justification related to business decisions that deviate from normal procedures (irregularities).
• Limits of authority, exposure, and concentration of the loan portfolio as well as other parameters aimed at limiting risk.
3. Meeting of RMC
The provisions of RMC meetings are as follow:
a. RMC meetings are carried out according to the needs and at least once in 3 (three) months or 4 (four) times in 1 (one) year.
b. RMC meetings are valid if attended by at least 2/3 (two thirds) of permanent members, or 1/2 (one half) of the permanent members with full approval from all permanent members.
4. Decision Making
The followings are the provisions concerning decision making:
a. Decision making concerning the use of RMC authority shall only be made through the legitimate results of RMC meeting.
b. The decisions of RMC meeting are valid and binding if approved by more than 1/2 (one half) of members who present in the meeting.
5. Frequency of RMC Meetings in 2020
As of December 31, 2020, RMC held 4 (four) meetings with details of the attendance of RMC members as follows:
Position Number of Meetings Attendance Percentage
President Director (Jahja Setiaatmadja) 4 4 100%
Deputy President Director (Suwignyo Budiman) 4 3 75%
Deputy President Director (Armand W. Hartono) 4 4 100%
Credit and Legal Director (Subur Tan) 4 4 100%
Commercial and SME Banking Director (Henry
Koenaifi) 4 4 100%
Regional and Branch Network Director (Erwan Yuris
Ang) 4 4 100%
Corporate Banking Director (Rudy Susanto) 4 4 100%
Human Resource Director (Lianawaty Suwono) 4 1 25%
Transactions Banking Director (Santoso) 4 4 100%
Planning and Finance Director (Vera Eve Lim) 4 4 100%
Compliance and Risk Management Director (Inawaty
Handojo) 1) 1 1 100%
Compliance and Risk Management Director (Haryanto
T. Budiman) 2)*) 3 3 100%
Information Technology Director (Gregory Hendra
Lembong) 3)*) 3 3 100%
EVP of Credit Risk Analysis Group (GARK) 4 4 100%
Head of Compliance Work Unit 4 4 100%
Head of Risk Management Work Unit (Secretary) 4 4 100%
Head of Internal Audit Division 4 4 100%
EVP of Corporate Finance Division and the Corporate
Secretary and Communications Division 4) 2 2 100%
Head of Commercial and SME Business Division 4) 1 1 100%
Head of Corporate Finance Group 4) 1 1 100%
Head of Network and Regional Development 4) 1 1 100%
Position Number of Meetings Attendance Percentage
Head of Enterprise Security Work Unit 4) 1 1 100%
Head of Corporate Secretary and Communication
Division 4) 1 1 100%
Head of Operation Strategy and Development
Division 4) 1 1 100%
Head of Legal Group 4) 1 1 100%
Notes:
1) Served as chairman (Compliance and Risk Management Director) until May 2020.
2) Served as chairman (Compliance and Risk Management Director) starting in June 2020.
3) Served as Director starting in June 2020.
4) The number of meetings for non-permanent members is in accordance with the invitations for the related discussion topic.
*) Number of meetings in line with effectively serving as Directors.
The details of the implementation of RMC meetings throughout 2020 are as follows:
No. Date Agenda
1 March 27, 2020 - Liquidity Stress Test (General Market Stress Scenario) - Impact Simulation of OJK Regulation No. 11/POJK.03/2020 2 August 5, 2020 - Credit Portfolio as of June 2020
- Liquidity Stress Test (General Market Stress Scenario)
3 October 14, 2020 - Minimum Operational Risk Capital Adequacy Requirement using Standardized Approach.
- Cyber Risk and Mitigations
4 November18, 2020 - Financial Conglomerates (Preparation of the Corporate Charter)
c. Informing condition of BCA portfolio as of June 2020.
d. Informing BCA liquidity up to July 2020 and BCA’s funding capacity under stress condition in the market based on stress test assumpstions.
e. Informing new OJK Circular Letter regarding the calculation of RWA for Operational Risk.
f. Informing Cyber Risk and its mitigation.
g. Informing OJK Regulation No. 45/POJK.03/2020 concerning Financial Conglomerates, which includes the criteria and coverage of the financial conglomerate and the Company Charter.
6. Accountability Reporting
Accountability and work realization of the RMC are reported through:
a. Periodical written report at least once in 1 (one) year to the Board of Directors concerning the results of the routine RMC meetings.
b. Written report to the Board of Directors concerning the results of special meetings held to discuss certain matters.
c. Special report or activity report (if necessary).
7. Realization of Work Program in 2020
In carrying out its duties during 2020, RMC accomplished the following work programs:
a. Informing BCA’s funding capacity under stressful conditions in the market.
b. Informing simulation results regarding impact of the implementation of OJK Regulation No.
11/POJK.03/2020 related to national economic stimulus.
3. INTEGRATED RISK MANAGEMENT COMMITTEE (IRMC)
IRMC was established to ensure that the risk management framework provides adequate protection against all risks faced by BCA and its Subsidiaries in an integrated manner.
The IRMC’s structure is determined based on the Board of Directors Decree No. 121/SK/DIR/2019 dated August 6, 2019 concerning the Integrated Risk Management Committee Structure.
Guidelines/Charter
In carrying out its duties and responsibilities, IRMC refers to the Board of Directors Decree No. 121/
SK/DIR/2019 dated August 6, 2019 concerning the Integrated Risk Management Committee Structure,
OJK Regulation No. 18/POJK.03/2016 concerning Implementation of Risk Management for Commercial Banks, OJK Regulation No. 17/POJK.03/2014 concerning The Implementation of Integrated Risk Management for Financial Conglomerates, and OJK Regulation No.
45/POJK.03/2020 concerning Financial Conglomerates.
Scopes stipulated in the Board of Directors Decree No. 121/SK/DIR/2019 concerning the Integrated Risk Management Committee Structure are as follow:
• Organization Scope
- Mission, Main Function, Position and Authority, and
- Position and Composition of Committee
• Completeness of Committee
- Committee Personnel, Main Duties, and - Decision Making and Accountability
1. Structure, Membership of IRMC, and Voting Rights Status
Based on one of the articles of the Board of Directors Decree No. 121/SK/DIR/2019 concerning the Integrated Risk Management Committee Structure, the structure, membership and voting rights status of IRMC, are as follows:
Position in the Committee Served by Voting Rights Status
Chairman (concurrently as a permanent member)
The director in charge of the integrated risk management function
Reserve voting rights Permanent member 1) • All members of the Board of Directors
• Head of Compliance Work Unit
• Head of Internal Audit Division 3) Non-permanent member
2)
1. Executive Officer
2. Subsidiary Director *)
• All of Executive Vice President
• All Heads of Divisions/Business Units/Groups/Work Units related to Subsidiaries, other than Permanent Members
Directors who represent subsidiary, and are appointed by the Subsidiary
Secretary (concurrently as
a permanent member) Head of Risk Management Work Unit/Alternate Officer
Notes:
*) The number and composition are adjusted to the needs as well as the efficiency and effectiveness of the implementation of IRMC duties by taking into account, among others, the representation of each financial service sector.
1) If there are concurrent positions, the person concerned only has one vote.
2) According to the topics discussed.
3) Do not have voting rights.
2. Main Functions, Authorities, and Responsibilities of IRMC
Main Functions of IRMC
The IRMC has the main function to provide recommendations to the Board of Directors, which at least include:
• Compilation of integrated risk management policies.
• Revision or refinement of risk management policy based on evaluation results.
Authorities of IRMC
The IRMC has the authority to review and provide recommendations on matters related to integrated risk management for decisions by the Board of Directors.
Duties and Responsibilities of IRMC
In carrying out its functions, the IRMC has the following main duties:
• Provide recommendations to the IRMC secretary regarding the topics and meeting materials to be discussed in the IRMC meetings.
• Provide input of information and analysis related to the topics discussed at the IRMC meeting.
Topics that can be discussed at the IRMC meeting include:
- The direction and objectives of BCA in formulating policies, strategies, and guidelines for the implementation of integrated risk management, and amandments as needed.
- Assessment of the effectiveness of the implementation of an integrated risk management framework.
- Development and trend of integrated risk exposure and proposing an acceptable risk level of overall risk tolerance.
- Results of studies regarding total integrated risk exposure and its impacts.
- Assessment of BCA’s capital adequacy in facing the risk of losses that arise using various stress testing scenarios.
- Proposal to develop risk measurement methods, contingency plans in abnormal condition (worst case scenario), and other methods related to integrated risk management.
- Matters requiring justification related to business decisions that deviate from normal procedures (irregularities).
- Limit of authority, exposure, and concentration of the loan portfolio as well as other parameters aimed at limiting risk.
- Refining the implementation of integrated risk management periodically and incidentally as a result of changes in internal and external conditions that affect capital adequacy, risk profile, and ineffectiveness in the implementation of integrated risk management based on evaluation results.
3. Meeting of IRMC
The provisions of IRMC meetings are as follows:
• IRMC meetings are held as needed and at least once every semester.
• IRMC meetings are valid if attended by at least 51% (fifty one percent) of the total permanent members.
4. Decision Making
The following provisions regulate the decision- making in the IRMC:
• Decision making related to the exercise of the IRMC’s authority shall only be carried out through legitimate IRMC meeting decision.
• IRMC meeting decisions are valid and binding if approved by more than ½ (one half) of the total members who present in the meeting.
5. Frequency of IRMC Meetings in 2020
As of December 31, 2020, IRMC held 2 (two) meetings with the following details:
Position Number of Meetings Attendance Percentage
President Director (Jahja Setiaatmadja) 1) 2 2 100%
Deputy President Director (Armand W. Hartono) 1) 2 2 100%
Deputy President Director (Suwignyo Budiman) 1) 2 1 50%
Credit and Legal Director (Subur Tan) 1) 4) 2 2 100%
Commercial and SME Banking Director (Henry Koenaifi) 1) 2 2 100%
Regional and Branch Network Director (Erwan Yuris Ang) 1) 2 2 100%
Corporate Banking Director (Rudy Susanto) 1) 2 2 100%
Compliance and Risk Management Director (Inawaty
Handojo) 1) 4) 1 1 100%
Compliance and Risk Management Director (Haryanto T.
Budiman) 1) 4) 2 2 100%
Human Resources Director (Lianawaty Suwono) 1) 2 1 50%
Banking Transactions Director (Santoso) 1) 2 2 100%
Planning and Finance Director (Vera Eve Lim) 1) 2 2 100%
Information Technology Director (Gregory Hendra Lembong) 2 2 100%
Head of Compliance Work Unit 1) 2 2 100%
Head of Risk Management Work Unit (Secretary) 1) 3) 2 2 100%
Head of Internal Audit Division 2) 2 2 100%
PT BCA Finance Director 2) 3) 2 2 100%
PT BCA Multi Finance Director 2) 3) 2 2 100%
PT BCA Syariah Director 2) 3) 2 2 100%
BCA Finance Limited Director 2) 3) 2 2 100%
PT BCA Sekuritas Director 2) 3) 2 0 0%
PT BCA Insurance Director 2) 3) 2 2 100%
PT BCA Life Director 2) 3) 2 2 100%
PT Central Capital Ventura Director 2) 3) 2 2 100%
PT Bank Digital BCA Director 3) 2 2 100%
Notes:
1) Permanent member.
2) Non-permanent member
3) The number of meetings for non-permanent members is in accordance with the invitations for the related discussion topic.
4) Chaired by Mrs. Inawaty Handojo for the period until May 2020; whereas since Mrs. Ibu Inawaty Handojo ended her term as a Director, IRMC is chaired by Mr. Haryanto T. Budiman (as of June 2020).
The implementation of IRMC meetings throughout 2020 is as follows:
No Date Agenda
1. May 20, 2020 - Integrated Stress Test of the BCA Financial Conglomerates in 2020 - Integrated Limit Review
- Integrated Risk Profile Report on the BCA Financial Conglomerates for Semester II 2019
2. September 2, 2020 - Integrated Risk Profile Report on the BCA Financial Conglomerates for Semester I 2020
- IRMIS development update
- OJK Regulation No. 28/POJK.05/2020 concerning Assessment of the Soundness of Nonbank Financial Institutions.
6. Accountability Reporting
Accountability and work realization of the IRMC are reported through:
• Written reports periodically at least once a year to the Board of Directors, containing results of regular IRMC meetings.
• Written report to the Board of Directors regarding the results of special meetings held to discuss certain matters.
• Special reports or activity reports (if needed).
7. Realization of Work Program in 2020
Throughout 2020, IRMC has realized the following work programs:
• Informing stress test results on integrated Financial Conglomerate BCA 2020.
• Informing integrated limit results.
• Informing the Integrated Risk Profile Report on BCA Financial Conglomerate for the second Semester of 2019.
• Informing the Integrated Risk Profile Report on BCA Financial Conglomerate for the first Semester of 2020.
• Informing IRMIS development update.
• Informing as for OJK New Regulation 28/
POJK.05/2020 concerning on the Assessment of Soundness Level for Non-Bank Financial Services Institutions.
4. CREDIT POLICY COMMITTEE (CPC)
The Credit Policy Committee (CPC) was established to direct the disbursment granting of credit through the formulation of credit policies in order to achieve prudent lending.