This is reflected in the very adequate fulfillment of the principle of integrated management. The integrated management process based on the assessment result is very efficient, supported by a complete structure.
POLICY OF INTRA-GROUP TRANSACTION CONTAINING THE POLICY TO IDENTIFY, MANAGE AND MITIGATE THE INTRA-GROUP TRANSACTIONS
Ensure that each entity in the financial conglomerate implements intra-group transaction risk management. Placement of competent officers and staff in work unit related to the implementation of intra-group transaction risk management.
GCG Implementation Disclosures include
Relating to Business Management in general
Adjusting the recruitment strategy to obtain personnel who are reliable and competent, as well as improving the quality of personnel through appropriate training.
Relating to Risk Management
Operational processes with a high risk of human error must be assessed and mitigated by leveraging existing facilities within the systems. From the increased risk of cybercrime, the security factor of online and mobile banking is very important and accordingly, the education and socialization of risk to customers as service users is required to be improved.
Relating to Audit and Compliance
Adequacy and implementation of duties of the Committees;
Execution of other tasks relevant to the functions of the Audit Committee at the request of the Board of Commissioners. To recommend independent parties as prospective members of the Audit Committee and the Risk Review Committee to the Board of Commissioners. To evaluate the feasibility of the facilities policy provided to the Board of Commissioners and Board of Directors.
Implementation of Compliance Function, Internal Audit and External Audit Implementation of Compliance Function
Coordinates and monitors the implementation of the AML and CFT policy with those relevant working units that interface with clients. The effectiveness of the internal audit function and its compliance with the Implementation Standard of the Internal Audit Function in Banking (SPFAIB) is reviewed by an independent external party at least every 3 (three) years. Implementation of Internal Capital Adequacy Assessment Process (ICAAP) in accordance with Bank Indonesia regulation.
Implementation of Risk Management and the Internal Control System
Prepare the BCA Risk Profile Report on a quarterly basis and the Integrated Risk Profile Report every six months, which must be submitted to OJK in a timely manner. Regarding risk management, BCA implements the Risk Management Framework in an integrated manner as expressed in the basic risk management policy. In order to implement risk management effectively and optimally, BCA has established a Risk Management Committee to discuss risk-related issues in detail and recommend risk management policies to the Board of Directors.
Credit Risk
Compiling and submitting integrated risk profile reports. There are 8 (eight) types of risks that are managed:.
Market Risk
An important part of BCA's liabilities that are sensitive to interest rate movements are customer deposits, while BCA's interest rate sensitive assets are government bonds, securities and loans. ALCO regularly monitors market developments and adjusts interest rates on deposits and loans. BCA sets the deposit rate based on market conditions and competition by monitoring the movement of the reference rate and the interest rates offered by competing banks.
Liquidity Risk
Operational Risk
BCA also maintains a database of occurrences/losses related to operational risks occurring in all business units, called the Loss Event Database (LED). In addition, BCA also applies LED to analyze cases or problems faced by the bank to decide on the necessary improvement/preventive measures to minimize/reduce the risk of operational losses that may arise later. BCA calculates the Bank's minimum capital requirement for operational risks based on the Basic Indicator Approach under Bank Indonesia's regulations regarding the inclusion of operational risks in the calculation of the capital adequacy ratio (CAR), apart from credit risk and market risk.
Legal Risk
The LED is mainly maintained as an operational loss recording instrument that the BCA will use in calculating capital requirements and to regularly monitor events that may result in operational losses for the BCA. BCA implements the Key Risk Indicator (KRI), which is an application that can help provide an indication (early warning sign) of the likelihood of increased operational risk in work units. We have carried out an inventory, monitored, analyzed and calculated potential losses that may arise as a result of litigation.
Reputation Risk
Strategic Risk
Compliance Risk
In assessing inherent compliance risks, the parameters are the type and significance of violations committed, frequency of violations or compliance record, and violation of policies related to specific financial transactions. To help identify suspicious financial transactions, BCA has an application that is constantly being improved to improve its capacity. Regarding the implementation of Integrated Risk Management for Financial Conglomeration, the Financial Conlomeracy of BCA manages in an integrated manner 10 (ten) types of risks with additional 2 (two) risks as follows:.
Intra-group Transaction Risk
BCA enforces compliance policies and procedures that, among other things, govern a process for continually aligning internal policies and systems with prevailing laws and regulations, communicate policies to relevant employees, review new products/activities, conduct periodic compliance testing, provide employee training and prepare quarterly compliance reports for submission to the Board of Directors and Board of Commissioners.
Insurance Risk
Internal Supervisor oversees the implementation of internal controls in certain work units at Head Office. Review results are presented to the Board in the Audit Report and Audit Follow-up Report. The Branch Internal Supervisor (PIC), Internal Regional Office Supervisor (PIKW) and DAI evaluate the implementation of BCA systems and procedures.
Provision of Funds to Related Parties And Large Exposures
BCA is firmly committed to complying with applicable laws and regulations and taking the necessary measures to remedy any deficiencies. A quarterly compliance monitoring report in relation to the BCA Precautionary Principle is prepared and submitted to the Board of Directors and the Board of Directors. BCA's compliance risk management strategy includes the necessary policies to ensure compliance with applicable laws and regulations, which means proactively taking preventive measures (ex-ante) to reduce the possibility of violations and curative measures (ex-post) to improve.
Strategic Plan
In order to maintain the liquidity position, BCA will continue to monitor the development of the banking sector, especially from the point of view of the development of the liquidity trend. Asset quality will become an important factor in maintaining BCA's strategic position in national banking and maintaining sustainable long-term growth. However, BCA will remain committed to being one of the leading banks and continues to maintain a strategic presence in the individual credit market.
Transparency of Financial and Non-Financial Condition Undisclosed In other Reports Information on BCA’s financial condition is disclosed explicitly and transparently in
BCA is confident that the strategy and policy will support the bank in building a consistent long-term competitive advantage, which it believes will be able to build a qualified customer base amid the increasing competitiveness of the Indonesian banking industry. Transparency of the financial and non-financial condition is not disclosed in other reports Information about the financial condition of BCA is explicitly and transparently disclosed in.
Annual Report
Quarterly Published Financial Reports
Prepared and presented reports in accordance with the procedure, type and scope specified in Bank Indonesia's policy on the transparency of the financial condition of banks. Published information about BCA products in accordance with Bank Indonesia's policy on transparency of banking product information and customer usage. It provided customers with a mechanism for customer complaints and dispute resolution in accordance with Bank Indonesia's Customer Complaints and Bank Mediation Policy.
Other information related to GCG
58 In addition, BCA provides and communicates with customers about its complaint and dispute resolution mechanism in accordance with Bank Indonesia's policy on customer complaints and banking mediation. Has transparently disclosed its financial and non-financial condition to stakeholders, including through periodic financial reports, routine reporting of statutory credit limit to Bank Indonesia, quarterly published financial reports, and listed on BCA's official website in accordance with existing policies . If necessary or deemed necessary, submit the annual report to Bank Indonesia, regulators and other institutions.
Share ownership of the members of Boards of Commissioners and Directors with an equity amount of 5% (five percent) or more, including the type and number of shares in
59 Share ownership for the members of the board of commissioners, amounting to 5% or more of the paid-up capital. Share ownership by members of the board of directors amounting to 5% or more of the paid-up capital. Financial and family relationships a member of the board and the board with other members of commissioners, board others.
Financial Relations and Family Relationship a Member of the Board of Commissioners and the Board of Directors with other members of board of commissioners, Board of Directors other
Most of the members of the Board of Directors of BCA have no financial, managerial, share ownership or family ties with the members of the Board of Commissioners, fellow members of the Board of Directors. Most of the members of BCA's Board of Directors have no financial, managerial, share ownership or family relationship with the Controlling Shareholders or relationship with BCA that could affect their ability to act independently.
Stock Option
The amount of payment received in cash in 2015 for each commissioner for 1 (one) year exceeds Rp 2 billion.
Highest and Lowest Salary Ratio
The benefits compared in the salary ratio above are the benefits received monthly by the members of the board of directors and the board of directors and employees. The frequency of board meetings, the frequency of board meetings, and the frequency and level of joint board and board meetings.
The Board of Directors Meeting Frequency, the Board of Directors Meeting Frequency, and The Board of Commissioners and Board of Directors Joint Meeting frequency and level of
If consensus agreement does not occur, decision-making is carried out on the basis of majority vote. Differences of opinion (dissenting opinions) that occur in the Board of Commissioners' meetings must be clearly stated in the minutes of the meeting together with the reasons for disapproval. 64 The Board of Commissioners and Board of Directors Joint Meeting frequency and level of attendance of Directors at the Joint Meetings throughout 2015 is as follows:.
Internal Fraud
In 2015, there were no significant matters faced by BCA and its subsidiaries, or members of its Board of Commissioners and Board of Directors in office for this reporting period, and consequently there is no effect on BCA's financial condition. Throughout 2015, there were no material administrative sanctions imposed by authorities (Financial Services Authority, Bank Indonesia, Stock Exchange and other authorities) on BCA, or members of the Board of Commissioners and Board of Directors.
Transactions with Conflict of Interest and Affiliated Transactions
Shares Buy Back
Funds for Social Activities and/ or Funds for Political Activities
Bank education and cooperation with other institutions related to education, and contributions/donations to other educational institutions. Bakti BCA Empathy Program in the form of donations for victims of natural disasters and sports programs.
Individual 1 Overall, implementation of Good Corporate Governance (GCG) by the Management of BCA is rated excellent. As reflected in the
