Adequacy of identification process, measurement, monitoring and risk management and information system for inter-group transaction risk management; Managing and supervising inter-group transactions of the financial conglomerate based on the principle of prudence.
SUPERVISION OF THE BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS
ADEQUACY OF INTER GROUP TRANSACTION POLICIES, PROCEDURES, AND DETERMINATION OF RISK LIMITS
The Financial Conglomerate must ensure that the setting of transaction limits between groups is in accordance with applicable legal provisions. ADEQUATE IN THE PROCESS OF IDENTIFICATION, MEASUREMENT, MONITORING AND RISK MANAGEMENT, AS WELL AS IN THE INTERGROUP TRANSACTION RISK MANAGEMENT INFORMATION SYSTEM.
ADEQUACY IN THE PROCESS OF IDENTIFICATION, MEASUREMENT, MONITORING, AND RISK CONTROL, AS WELL AS THE INTER-GROUP TRANSACTION RISK MANAGEMENT INFORMATION SYSTEM
The Financial Conglomerate must ensure the fulfillment of the principle of fairness (fairness of the transaction) in relation to intergroup transactions. The internal control system for the risk of intergroup transactions refers to the internal control as stated in the basic policy of integrated risk management.
A COMPREHENSIVE INTERNAL CONTROL SYSTEM FOR THE IMPLEMENTATION OF INTER-GROUP TRANSACTION RISK MANAGEMENT
Transparency in the implementation of good corporate governance as mentioned in point IX Circular letter from the Financial Services Authority No. 13/SEOJK.03/2017 dated 17 March 2017 regarding the implementation of governance for commercial banks consists of:.
Corporate Governance Implementation Disclosures include
Implementation of Duties of the Board of Directors and the Board of Commissioners are as follows
Hold regular meetings of the Supervisory Board in accordance with applicable laws and regulations. Supervisory Board meetings produce clear decisions and are recorded in the minutes.
Adequacy and implementation of duties of the Committees Committees under the Board of Commissioners
Duties and responsibilities of the committees within the board of commissioners Duties and responsibilities of the audit committee. Performs other duties relevant to the work of the Audit Committee at the request of the Board of Commissioners. Formulated recommendations regarding the remuneration of the Board of Directors and/or Board of Directors.
Implementation of Compliance Function, Internal Audit and External Audit Compliance Function
Implementation of the Program for the Prevention of Money Laundering and the Prevention of the Financing of Terrorism (AML and CFT), i.e. Evaluation of the performance of audit services of annual historical financial information by PA and PAF in the past period. Compliance of audit performance by PA and/or PAF with applicable auditing standards;
Application of Risk Management
Monitor and evaluate the implementation of the RMC and Risk Management Unit tasks. Improving the completion of integrated risk management policies based on the results of the implementation evaluation. 17/POJK.03/2014 regarding implementation of integrated risk management for financial conglomerates and OJK circular letter no.
Credit Risks
42 In order for the implementation of risk management to proceed efficiently and optimally, BCA has an RMC that has the authority to review and make recommendations in matters relating to risk management to decisions by the board of directors. BCA always carries out a comprehensive risk assessment of the planned issuance of new products and activities in accordance with legal regulations. In connection with the monitoring and control of credit risk arising in subsidiaries, BCA has continuously monitored the subsidiaries' credit risk, while at the same time ensuring that the subsidiaries have a good and effective credit risk management policy.
Market Risk
In 2019, a further monitoring system such as the Early Warning System (EWS) was developed, followed by credit provisions in accordance with the latest provisions of the supervisory authority and the development of the credit activities with due attention to the credit activities and the principles of prudence and risk appetite of BCA .
Liquidity Risk
44 SBN, as well as GWM in foreign currency in the form of open currency deposits in BI.
Operational Risk
Legal Risk
In order to identify, measure, monitor and control the legal risk, the Company has created a Legal Group at the Central Office and the Legal Work Unit in all Regional Offices. Distribution of the impact of the new regulations in force on the Company's banking activities and the various modes of operation of banking crimes and legal treatment instructions for branch officers, regional offices and work units of the respective Head Office. Conduct legal defense of civil and criminal cases involving the Company that are pending in court and monitor the progress of the case.
Reputation Risk
Meanwhile, the parameters used to calculate losses from a claim are losses suffered by the Company and Subsidiaries based on court decisions that have permanent legal force. The creation of a Legal Risk Management Policy has internal provisions governing the organizational structure and job description of the Legal Group, as well as the standardization of legal documents. Registration of the assets of BCA, including Intellectual Property Rights (IPR) for BCA's banking products and services as well as rights to land and buildings owned by BCA with the competent authority.
Strategic Risk
In accordance with the OJK Regulation no. 46/POJK.03/2017 of July 12, 2017 on the implementation of the compliance function of commercial banks, the BCA appointed a member of the board of directors as the director in charge of the compliance function, who is responsible for ensuring compliance and minimizing the risk of compliance by creating management policies and procedures compliance risks and implementation monitoring. The Director responsible for the compliance function is assisted in the performance of his duties by the Compliance Unit (CU), which is independent of the operational work unit. The results of the compliance director's oversight are reported quarterly to the director's president, with a copy to the board of directors.
Inter-Group Transaction Risk
Compliance risk is a type of risk that must be managed by the Company, given that this risk can cause financial and non-financial losses. In addition, NJM is also responsible for the implementation of the Anti-Money Laundering and Prevention of the Financing of Terrorism (PPP and CFT) Program, including being responsible for conducting risk assessments for the implementation of the AML and CFT program according to regulatory provisions. The company also checks customer data and transactions in relation to the List of Terrorist and Terrorist Organizations (DTTOT) and the List of Proliferation Financing of Weapons of Mass Destruction (DPPSP) issued by the competent authority every time an account is opened, when BCA enter into Identified business relationships and list changes.
Insurance Risk
The risk profile rating was the result of an assessment on "low to moderate" risk rating and the quality rating of the implementation of "satisfactory" risk management. The quality of the implementation of risk management in the coming years will be stable because BCA and its subsidiaries are constantly adapting risk management in all their activities with more improvements that allow both to identify, measure, monitor and control any emerging risk. What BCA and its subsidiaries aim at is that they can better manage risk and determine risk appetite and risk tolerance in accordance with the complexity and characteristics of the business.
Internal control is implemented through several activities, namely
49 - Head office internal supervisor to oversee the implementation of internal control .. in certain work units at Head Office. Internal Audit Division independent of risk taking unit to examine and assess the adequacy and effectiveness of risk management, internal control and corporate governance processes, either at BCA or for members of BCA's financial conglomerates. The adequacy and effectiveness of the internal control system is independently evaluated by DAI and the results are reported to the Boards of Commissioners and Directors, and the Audit Committee.
Provision of Funds To Related Party and Large Exposure
The Basic Bank Lending Policy PT BCA Tbk (KDPB) issued on 22 July 2019 (hereinafter referred to as "The Lending Policy for Board of Directors and Board of Commissioners"). During 2019, BCA implemented a policy of providing funds to related parties, large exposures and to the Board of Directors and the Board of Commissioners in accordance with prevailing regulations. The Board has a process to review, monitor and supervise the implementation of the BCA's strategy in accordance with internal policies and regulatory provisions.
Transparency of Financial And Non-Financial Conditions Undisclosed In Other Reports
The provision of comprehensive financial products and services complemented our core transaction bank and created cross-selling opportunities to support overall performance. Comprehensive financial services provided in collaboration with subsidiaries will strengthen the relationship with our customers. We recently completed the acquisition of Bank Royal, part of our business plan for the year, and are in the process of formulating its business model, which will focus on the delivery of digital services in partnership with BCA.
Quarterly Published Reports
53 partnered with subsidiaries engaged in auto financing, sharia banking, securities, remittances, general insurance, life insurance and venture capital investment in technology. Published Quarterly Financial Reports are signed by the President, Director and 1 (one) member of the Board of Directors of BCA. The published quarterly reports on the BCA website, in the form of the Financial Report and other reports, are kept for at least the last 5 (five) financial years.
Monthly Published Financial Reports
Most members of the BCA Board of Directors are not related to other members of the Board of Directors, members of the Board of Commissioners or Major and/or Controlling Shareholders. The interrelationships between members of the Board of Directors and other members of the Board of Directors, members of the Board of Commissioners and Major and/or Controlling Shareholders are shown in the table below. The relationships between the members of the Board of Commissioners and other members of the Board of Commissioners, members of the Board of Directors and the main and/or controlling shareholders are shown in the table below.
Remuneration for the Board of Directors
The amount of remuneration for each member of the Board of Directors over 1 (one) year amounts to more than Rp2 billion, which was received in cash in 2019.
Remuneration for the Board of Commissioners
The amount of remuneration for each member of the Board of Commissioners in 1 (one) year is over Rp 2 billion received in cash in 2019.
Stock Option
The ratio of the highest and lowest salaries
Meetings of The Board of Directors, Board of Commissioners and Joint Meetings Board of Directors Meetings
Meetings of the Board of Commissioners must be held periodically, at least 1 (one) time in 2 (two) months. The schedule of the Board of Commissioners' meetings may change from time to time as deemed necessary. Attendance frequency of the Board of Directors in Joint Meetings of the Board of Commissioners and the Board of Directors in 2019.
Internal Fraud
Legal Cases
- Criminal Cases
- Civil Cases
64 Participation Frequency of the board of commissioners in joint meetings of the board and the board in 2019. Important matters that BCA, members of the board of BCA and members of the board face. Throughout 2019, the BCA, none of the members of the BCA Board of Directors and the Commissioner of the BCA were involved in any material matter, whether criminal and/or civil.
Transactions with Conflict of Interests Policy related to conflicts of interest
Important matters faced by members of the boards and commissioners of BCA subsidiaries. 67 By including BCA's policy on conflicts of interest with integrated management, the Board also ensures that BCA's intragroup transaction risk management is free from conflicts of interest that may occur between BCA and the entities under the Group. All transactions containing conflict of interest are disclosed based on BCA Circular No.03/2017 on GCG Implementation for Commercial Banks.
Shares Buy Back
Distribution of Fund For Social Activities
BCA Smart Solutions, comprising
BCA Synergy Solution, comprising
Donation For Political Activities
The governance structure aspect for all Good Corporate Governance Implementation Assessment Factors are complete and fully sufficient. The aspect of governance process in all Good Corporate Governance Implementation Assessment Factors are very effective and supported by fully sufficient structure and infrastructure (governance structure). In order to determine the required action plan in time, BCA periodically conducts a comprehensive self-assessment of the adequacy of the application of good corporate governance.
