RMC Guidelines
III. INTEGRATED RISK MANAGEMENT COMMITTEE The Integrated Risk Management Committee (IRMC)
was formed to ensure that the risk management framework provides adequate protection for all risks faced by BCA and its Subsidiaries in an integrated manner.
1. Structure, Membership of IRMC, and Voting Rights Status
Based on Directors Decree No. 121/SK/DIR/2019 dated August 6, 2019, concerning the Structure of the Integrated Risk Management Committee, the structure, membership, and status of the voting rights of the IRMC are as follows:
Position in the Committee Served By Voting Right Status
Chairman (concurrently
as member) Director in charge of the integrated risk management function
Reserve voting right Permanent member1) • All members of the Board of Directors
• Head of Compliance Work Unit
• Head of Internal Audit Division3) Non-Permanent
member2)
1. Executive Officer
2. Director of Subsidiary*)
• All Executive Vice Presidents
• All Heads of Divisions/Groups/Work Units related/related to Subsidiaries, excluding Permanent Members
Director who represents and is appointed from the Subsidiary
Secretary (concurrently
as permanent member) Head of Risk Management Work Unit/Alternate Officer
*) JThe number and composition are adjusted to the needs as well as the efficiency and effectiveness of the implementation of the IRMC tasks by considering, namely representation of each financial services sector.
1) If there is a concurrent position, the person concerned only has 1 (one) vote.
2) According to the topic discussed.
3) No voting rights
2. Main Functions, Authorities, Duties and Responsibilities of IRMC
Main Functions of IRMC
The IRMC’s main function is to make recommendations to the Board of Directors, which at least includes:
• Developing integrated risk management policies.
• Based on the results of the implementation evaluation, improve or refine the integrated risk management policy.
IRMC Authority
The IRMC has the authority to review and make recommendations on issues relating to integrated risk management for the Board of Directors decision.
Duties and Responsibilities of IRMC
The IRMC’s main tasks in carrying out its functions are as follows:
• Provide input to the IRMC secretary in the form of topics and meeting materials to be discussed at the IRMC meeting.
• Contribute information and analysis related to the topics discussed at the IRMC meetings.
IRMC Guidelines
The IRMC performs its duties and responsibilities with reference to:
• Directors Decree No. 121/SK/DIR/2019 dated August 6, 2019, regarding the Structure of the Integrated Risk Management Committee (IRMC).
• OJK Regulation No. 18/POJK.03/2016 concerning the Implementation of Risk Management for Commercial Banks.
• OJK Regulation No. 17/POJK.03/2014 concerning the Implementation of Integrated Risk Management for Financial Conglomerates.
• OJK Regulation No. 45/POJK.03/2020 concerning Financial Conglomerates.
The scope regulated in the Decree of the Board of Directors No. 121/SK/DIR/2019 concerning the Structure of the Integrated Risk Management Committee is as follows:
• Organizational Scope
- Mission, Main Functions, Position, and Authorities.
- Committee Position and Composition.
• Completeness of the Committee - Committee personnel.
- Main tasks.
- Decision Making and Accountability.
Topics that can be discussed at the IRMC meeting include:
- BCA’s direction and goals in formulating policies, strategies, and guidelines for implementing integrated risk management, as well as changes to them if necessary.
- Assessment of the effectiveness of the integrated risk management framework implementation.
- The integrated risk exposure development and trends, as well as recommending an overall risk level that can be taken (risk appetite) and risk tolerance.
- Findings from studies on total integrated risk exposure and its impact.
- Assessment of BCA’s capital adequacy in the face of potential losses using various stress testing scenarios.
- Proposed the development of risk measurement methods, contingency plans for abnormal conditions (worst case scenario), and other integrated risk management methods.
- Issues requiring determination (justification) in connection with business decisions that deviate from standard procedures (irregularities).
- Limits on authority, exposure, and credit portfolio concentration, as well as other risk-management parameters.
- Improvements to integrated risk management implementation made on a regular or incidental basis as a result of changes in internal and external conditions affecting capital adequacy, risk profile, and ineffective implementation of integrated risk management based on evaluation results.
3. Meeting of IRMC
The provisions of the IRMC meeting are as follows:
• IRMC meetings are held as needed and at least once per semester.
• The IRMC meeting is valid if it is attended by more than ½ (half) of the total permanent members.
4. Decision Making
Provisions for decision-making by the IRMC are as follows:
• Decision making in relation to the use of the IRMC’s authority is only made through a valid decision of the IRMC meeting.
• The decisions of the IRMC meeting are valid and binding if approved by more than
½ (half) of the members present.
5. Frequency of IRMC Meetings in 2022
As of December 31, 2022, the IRMC has held 3 (three) meetings with the following details:
Position Number of Meeting Attendance Percentage
President Director (Jahja Setiaatmadja) 1) 3 3 100%
Deputy President Director (Gregory Hendra Lembong) 1) a) 3 2 67%
Deputy President Director (Suwignyo Budiman) 1) b) 1 0 0%
Deputy President Director (Armand W. Hartono) 1) 3 3 100%
Director of Credit and Legal (Subur Tan) 1) 3 3 100%
Director of Corporate Banking and Treasury (Rudy Susanto) 1) 3 2 67%
Director of Compliance and Human Resource (Lianawaty
Suwono) 1) c) 3 2 67%
Director of Banking Transaction (Santoso) 1) 3 3 100%
Director of Finance and Corporate Planning
(Vera Eve Lim) 1) 3 3 100%
Director of Consumer Banking (Haryanto T. Budiman) 1) d) 3 3 100%
Director of Regional and Branch Network (Frengky Chandra) 1) 3 2 67%
Director of Commercial Banking and SME (John Kosasih) 1) 3 3 100%
Director of Risk Management (Antonius Widodo Mulyono) 1) e) 2 2 100%
Head of Compliance Work Unit 1) 3 3 100%
1)
Position Number of Meeting Attendance Percentage Executive Vice President (EVP) in charge of Finance
& Accounting, Corporate Secretary & Corporate Communication, and Industry & Economic Research 2)
1 1 100%
Head of Enterprise Security Work Unit 2) 1 1 100%
Director of PT BCA Finance 2) 3 3 100%
Director of PT BCA Multi Finance 2) 3 3 100%
Director of PT Bank BCA Syariah 2) 3 3 100%
Director of BCA Finance Limited 2) 3 3 100%
Director of PT BCA Sekuritas 2) 3 0 0%
Director of PT Asuransi Umum BCA 2) 3 3 100%
Director of PT Asuransi Jiwa BCA 2) 3 2 67%
Director of PT Central Capital Ventura 2) 3 2 67%
Director of PT Bank Digital BCA 2) 3 3 100%
Notes:
a) Served as Deputy President Director since May 2022.
b) The term of office as Vice President Director ends in April 2022.
c) Served as Director in charge of Compliance since May 2022.
d) Served as Director of Compliance and Risk Management until April 2022, before serving as Director of Consumer Banking since May 2022.
e) Served as Director of Risk Management since May 2022.
1) Permanent Members.
2) The number of non-permanent member meetings is in accordance with the invitation for the related topic of discussion.
The implementation of the IRMC meetings throughout 2022 is as follows:
No. Date Agenda
1 March 30, 2022 • BCA Financial Conglomerate Integrated Risk Profile Report Semester II 2021
• Update on Preparation for Implementating OJK Circular Letter concerning Risk-Weighted Assets (RWA) Operational Risk Consolidatedly
2 June 28, 2022 • BCA Financial Conglomeration Integrated Stress Test for 2022
• BCA Subsidiaries Security Postures & Improvement Plan
3 November 4, 2022 • BCA’s Financial Conglomerate Integrated Risk Profile Report Semester I
• Review BCA’s Financial Conglomerate Integrated Risk Limit 2022
6. Accountability Reporting
The accountability and realization of IRMC work are carried out through:
• Periodic written reports at least once a year to the Board of Directors regarding the results of routine meetings in the IRMC.
• Written reports 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 the Work Program in 2022
The IRMC completed the following work programs in 2022:
• Providing information on the BCA’s Financial Conglomerate Integrated Risk Profile Report Semester II 2021.
• Providing information on the BCA’s Financial Conglomerate Integrated Risk Profile Report Semester I of 2022.
• Providing Updates on the Preparation for the Consolidated Implementation of OJK CIrcular Letter concerning Risk-Weighted Assets (RWA) for Operational Risk.
• Providing Information about the results of the BCA’s Financial Conglomerate Integrated Stress Test in 2022.
• Providing information on BCA’s Subsidiaries Security Policies and Improvement Plans.
• Informing pertaining to BCA’s Financial Conglomerate Integrated Risk Limit Review.
8. Work Plan of IRMC in 2023
The IRMC has prepared a work plan for 2023, including:
a. Providing information on the results of the integrated stress test of the BCA Financial Conglomerate in 2023.
b. Providing Information on the BCA Financial Conglomerate Integrated Risk Profile Report, Semester II of 2022.
c. Providing Information on the BCA Financial Conglomerate Integrated Risk Profile Report, Semester I of 2023.
d. Other issues related to integrated risk management.