Kebijakan Manajemen Risiko

Deskripsi - Kebijakan Manajemen Resiko

Risk management plays a role in protecting capital and optimizing return on risk. Extensive operating scale and increasing business volume, BRI must implement an integrated risk management pattern to identify, measure, monitor and control all risk exposures.

To grow into a leading bank, BRI expanded its business through continuous product and service innovation and supported by reliable digital and network supported satellite technology to optimize banking services all the way to the country.

BRI implements the Risk Management process consistently in every process of business and operational activity that makes BRI a healthy and sustainable bank.

Establishment of Risk Management Policies and Procedures

  1. BRI's Risk Management General Policy (KUMR BRI) is the highest rule in the implementation of risk management for all BRI business activities, individually or intergrated (BRI Board of Directors Decree No: S.72-DIR / DMR / 12/2016 on General Management Policy Risk of PT Bank Rakyat Indonesia (Persero), Tbk.
  2. Guidelines on Implementation of Risk Management Implementation
    1. Guidelines on Implementing Operational Risk Management.
    2. Guidelines on Implementation of Credit Risk Management Implementation.
    3. Guidelines on Implementing Market Risk Management Implementation.
    4. Guidelines on Implementing the Implementation of Liquidity Risk Management.
    5. Guidelines for Implementation of Enterprise Risk Management Risk Management.

TYPES OF RISK AND PROCEDURES OF MANAGEMENT

CREDIT RISK

Is a risk due to the failure of the debtor and / or other party (counterparty) in fulfilling the obligations to the Bank. Credit Risk can be sourced from various bank business activities.

Risk Management Effort

Pillar 1 Active Supervision of the Board of Commissioners and Board of Directors

 

  1. A credit decision process over a certain nominal value is required through the Credit Committee of the Board of Directors and consultation with the Board of Commissioners
  2. Follow-up monitoring by the Board of Commissioners and the Board of Directors if there is a risk limit exceeding
  3. Implementation of quarterly RMC forums discussing strategic issues related to corporate risk management
  4. Reporting the monthly risk profile of the Risk Management Work Unit to the Board of Directors.

Pillar 2 Adequate Policies, Procedures and Limit Setting

  1. Target Market Terms
  2. Determination of risk limit on corporate level (risk appetite statement) about NPL, and NPL Coverage
  3. Tiered PDWK Terms

Pillar 3 Risk Management Process and Risk Management Information System

Pillar 4 Internal Control System

  1. Identification Credit risk is performed using Credit Risk Rating (CRR) and Credit Risk Scoring (CRS) systems since 2001. Internal rating (Credit Risk Rating / Credit Risk Scoring) used at current BRI prepared based on empirical / historical data from existing debtors BRI using statistical methodology. This internal rating is reviewed periodically to the accuracy of the model and assumptions used to project failures, and adjusted assumptions in case of changes to both external and regulatory provisions. In order to overcome the weaknesses that may arise on the use of the internal rating model, validation has been made by an independent work unit of the work unit applying the model. The process of validation or review of credit risk measurement model is done by back testing method.
  2. Measurement credit risk is done by internal model using standard method by calculating probability of default and loss given default for each business segment based on the shift of its credit collectibility. Currently, BRI is also in the process of developing Internal Ratings Based Approach (IRBA). In addition, a series of Stress Test is also performed to measure the potential for maximum loss in case of stress conditions. The stress tests are based on several hypotheses and assumptions such as: economic growth, inflation, world oil prices and changes in Rupiah exchange rate.
  3. Monitoring credit risk is done through the process of monitoring the credit portfolio which is the responsibility of the credit administration work unit at the head office. Portfolio monitoring is conducted on the basis of credit quality, economic sector, credit utilization, initiator's work geography, and so on. Monitoring is also conducted to limit credit risk, among others: NPL, SML, Loan at Risk composition, Credit Cost, NPL Coverage ratio, PH, Recovery income, and Recovery Rate.
  4. Control credit risk is done through:
    1. The credit decision considers the aspect of the Collateral analysis, which must comply with the minimum loan to value or minimum coverage of the loan
    2. Credit quality improvement procedures through restructuring
    3. Procedures to minimize credit risk loss through credit settlement and billing optimization
    4. The troubleshooting write-off procedure for credit credits.
    1. Four Eyes Principles: separation of loan initiator functions with breakers
    2. Separation of work unit of loan initiator (business) with credit risk analysis work unit for Corporate segment
    3. Use of Loan Approval System (LAS) application which includes credit risk identification through CRR and CRS calculation as well as credit decision that has been in accordance with PDWK stages.
    4. CKPN determination is automatically based on internal model to calculate the adequacy of credit risk reserve based on loan portfolio per segment.
    5. Integration between exceeding credit risk limits with performance appraisals of business and individual work units.

MARKET RISK

Is a risk arising from the movement of market variables (adverse movement) of the portfolio owned by the Bank, which may harm the Bank. The market variables in this letter are interest rates and exchange rates.

Risk Management Effort

Pillar 1 Active Supervision of Board of Commissioners and Board of Directors

  1. Follow-up monitoring by the Board of Commissioners and the Board of Directors if there is a risk limit exceeding.
  2. Implementation of quarterly RMC forums discussing strategic issues related to corporate risk management
  3. Reporting the monthly risk profile of the Risk Management Work Unit to the Board of Directors.

Pillar 2 Adequate Policies, Procedures and Limit Setting

Market risk policies, procedures and limits have been developed and contained in the Treasury Policy as well as the Policy on Application of Market Risk Management (KUMR and P3MRP). The limit stated in the policy, among others are open position limit for trading, dealer limit limit, limit of cut loss and stop loss, uncommitted credit line limit, counterparty limit, and Value at Risk (VaR) limit.

Pillar 3 Risk Management Process and Risk Management Information System

  1. Identify
    1. Interest Rate Risk calculation by standard method is applied to the position of all financial instruments of BRI classified as Trading Book exposed to Interest Rate Risk and Calculation of Exchange Rate Risk by standard method applied to BRI foreign exchange position in Trading Book and Banking Book exposed to Risk Exchange Rate.
    2. Risk factors calculated in interest rate risk in standard methods are :

      The portfolio coverage calculated in the Minimum Capital Adequacy Requirement (KPMM) includes :

      1. Specific Risk of any securities or financial instrument, regardless of long position or short position. Thus the offset process is not possible unless the position is identical;
      2. General Market Risk of the entire portfolio, where long positions or short positions in different securities or instruments can be deleted.
      3. The market value of securities used in the calculation of Specific Risk and General Risk is the dirty price, ie the market value of the securities (net price) plus the present value of the accrued interest. The present value of the accrued interest can not be calculated based on the term of the coupon payment, the present value value does not make a material difference. The calculation of exchange rate risk is applied to all BRI positions both Trading Book and Banking Book in foreign currency including gold, with reference to the calculation of Net Open Position (NOP). The position of an instrument denominated in foreign currency, other than subject to Exchange Rate Risk, may also result in Interest Rate Risk (eg for cross-currency swaps instruments). In that case, the interest rate risk exposure must also be taken into account.
        1. Positions held for resale in the short run.
        2. Positions held for the purpose of obtaining short-term gains from actual and / or potential price movements.
        3. Positions held for the purpose of maintaining arbitrage profits.
        4. Derivative instruments related to securities or interest rates include Bond Forward, Bond Option, Interest Rate Swap, Cross Currency Swaps, Foreign Exchange Forward, Interest Rate Options, and Forward Rate Agreements / FRAs.
        5. All debt securities with fixed or floating interest rates, and all financial instruments having similar characteristics, including Negotiable Certificates of Deposits and securities sold by BRI on a repurchase term (Repo / Securities Lending).
        6. BRI's foreign exchange position in trading book and banking book exposed to exchange rate risk.
      4. Measurements
        1. Interest Rate Risk calculation by standard method is applied to the position of all financial instruments of BRI classified as Trading Book exposed to Interest Rate Risk and Calculation of Exchange Rate Risk by standard method applied to BRI foreign exchange position in Trading Book and Banking Book exposed to Risk Exchange Rate.
        2. Measuring market risk on a regular basis (daily, weekly and monthly) includes calculating market risk using standardized measurement method and internal model (VaR) measurement through GUAVA application, performing NII simulation every market interest rate change and arranging maturity profile securities.
        3. The valuation of trading book and banking book portfolios is done using quoted market prices from actively traded instruments (mark to market). The market price reflects actual and routine transactions conducted fairly. Marking market valuation results are periodically validated to ensure consistency and fairness of the market price used. If the market price is not available because the instrument is not actively traded then the valuation of fair value determination uses a price-to-model approach.
      5. Monitoring and Control

        In conducting market risk management, the Board of Directors regularly evaluates market risk through daily reports of Net Open Position, Asset & amp; Liability Committee (ALCO), as well as market risk exposure reports in the Market Risk Profile. In addition, BRI also held a Market Risk Management Committee forum every quarter.

      Pillar 4 Internal Control System

      1. Separation of front, middle and back office functions.

        BRI's market risk management function consists of front office work units (Treasury Division), middle office (Risk Management Division), and back office (Division of Sentra Operations) with each having different authority.

        1. The front office ranks are authorized to conduct financial instrument transactions and are responsible for monitoring market price movements.
        2. The middle office class sets and monitors market risk limits and periodically ensures market data used for mark-to-market (MTM).
        3. The ranks of the back office settle treasury transactions and daily set the market price (MTM) at the end of the day. Implementation of delegation of authority is realized through the stipulation of transaction limit in stages in accordance with competence and experience.
      2. Integrated market risk control system with front office function.
      3. BRI has implemented a treasury and market risk (GUAVA) application system which is an integrated system used by front office, middle office and back office functions. Through this application, BRI can conduct an integrated market risk measurement with daily transaction processing. In addition to monitoring instrument risk exposure, BRI also monitors market risk limits and transaction limits including dealer transaction limits, limit on open position, Limit Uncommitted Credit Line (UCL), cut loss limit and stop loss limit. Monitoring is done on a daily basis so as to speed up the provision of up-to-date information that supports timely and timely decision-making by line and management officials, especially for instruments belonging to trading / trading classifications.
      4. Integration between exceeding market risk limits and business unit performance appraisals.

LIQUIDITY RISK

Pillar 1 Active Supervision of Board of Commissioners and Board of Directors

  1. Implementation of ALCO mini ad-hoc meetings and weekly Board Meeting meetings when market liquidity or BRI conditions are sufficiently tight.
  2. Follow-up monitoring by the Board of Commissioners and the Board of Directors if there is a risk limit exceeding
  3. Implementation of quarterly RMC forums discussing strategic issues related to corporate risk management
  4. Reporting the monthly risk profile of the Risk Management Work Unit to the Board of Directors.

Pillar 2 Adequate Policies, Procedures and Limit Setting

Determination of minimum SR limit against GWM (risk appetite statement)

Pillar 3 Risk Management Process and Risk Management Information System

  1. Identification, Measurement and Risk monitoring through the daily liquidity profile dashboard
  2. Risk control through the liquidity contingency plan.

Pillar 4 Internal Control System

  1. System of monitoring daily liquidity position
  2. Integration between exceeding the liquidity risk limit by performance evaluation.

OPERATING RISK

It is a risk that, among others, is due to the inadequacy or non-functioning of internal processes, human error, system failure, or any external problems affecting the Bank's operations.

Risk Management Effort

Pillar 1 Active Supervision of Board of Commissioners and Board of Directors

  1. Follow-up monitoring by the Board of Commissioners and the Board of Directors if there is a risk limit exceeding
  2. The implementation of a quarterly RMC forum that addresses strategic issues related to corporate risk management
  3. Reporting the monthly risk profile of the Risk Management Work Unit to the Board of Directors.

Pillar 2 Adequate Policies, Procedures and Limit Setting

Limit approval for graded transactions

Pillar 3 Risk Management Process and Risk Management Information System

  1. Identificationoperational risks are made through RCSA equipment which includes 7 Functional activities of the bank: Credit, Treasury and Investment activities, Operations and services, Trade financing, Funding and debt instruments, Information Systems Technology and Management Information , and Management of human resources.
  2. Measuresoperational risk is performed using the Basic Indicator Approach (BIA) methodology. Nowadays gradually, BRI is preparing for the calculation by Standardized Approach (SA) method, which will then proceed with Advanced Measurement Approach (AMA) method.
  3. Monitoringthe risk profile is done through the Main Risk Indicator (IRU) tool, based on the assessment of risk profile and operational loss data managed through the Incident Management (MI) tool.
  4. Controlrisks through:
    1. New Product and Activity assessment procedures for each new product or service, each of which must be reviewed by the Risk Management Unit and the Compliance Work Unit as well as the Legal Work Unit (if required) before being registered with the regulator.
    2. The Business Continuity Management Protocol for catastrophic events. In this regard, BRI has a Crisis Management Team (TMK) that plays an important role in the event of disruption or disaster and is responsible for taking the necessary steps including the management of reputation risk. TMK structure is established in all work units of BRI namely TMK Head Office, TMK Regional Office, TMK Branch Office. The strategic aspect to be taken into account in managing reputation risk during a crisis is to maintain the trust of customers, shareholders and the surrounding community against BRI's good name.

Pillar 4 Internal Control System

  1. Separation of Maker-Checker-Signer functionality in banking operational activities, where approval of most operational processes has been embedded in Core Banking, Asset Management and HR MIS systems.
  2. Complaint Handling procedure with certain SLA.
  3. Implementation of SOP (Standard Operational Procedure) related to APU and PPT to protect BRI from the objective of money laundering and terrorism crime. As well as the existence of AML (anti money laundering) system to monitor suspicious transactions (CTR and STR).
  4. Integration between exceeding operational risk, legal, strategic and compliance limits with performance appraisal of business and individual work units.

LEGAL RISKS

Is a risk that causes the weakness of juridical aspect. The weakness of juridical aspect, among others, is caused by lawsuit, lack of supporting laws or weaknesses of engagement such as not being fulfilled with the terms of the legal contract and incomplete binding.

Risk Management Effort

Pillar 1 Active Supervision of Board of Commissioners and Board of Directors

Discussions on material legal cases, legal risk management and follow-up are discussed in the RMC, KPMR Meetings, and Audit Committee Meetings.

Pillar 2 Adequate Policies, Procedures and Limit Setting

  1. The legal guidelines are prepared by the Head Office Legal Division and socialized throughout the Operational Work Unit.
  2. Distribution of jurisdiction legal authority within the Legal Division of the Head Office and Legal Officer at the Regional Office.

Pillar 3 Risk Management Process and Risk Management Information System

  1. Any transaction process or new products and activities that have potential legal risks are reviewed first by the Legal Division.
  2. Legal Risk Monitoring of all Opersional Work Units in Indonesia is conducted by Legal Officers in Regional Offices through reporting mechanisms and documentation of legal cases.
  3. Legal Officer in Regional Offices and Head Office will conduct legal assistance in accordance with their authority in case of legal case in Operational Work Unit.

Pillar 4 Internal Control System

The Legal Division is actively socializing the criminal mode of operation and its legal handling procedures to minimize legal risks in the Operational Work Unit.

STRATEGY RISK

is a risk which, among others, is due to the improper determination and implementation of the Bank's strategy, improper business decision making or lack of responsiveness of the Bank to external changes.

Risk Management Effort

Pillar 1 Active Supervision of Board of Commissioners and Board of Directors

Discussions on strategic planning, monitoring of target achievement and strategy evaluation are discussed in the Board of Commissioners' Joint Meeting with the Board of Directors (Radirkom) at the time of discussion on RBB approval, RKAP approval, and quarterly financial performance discussions.

The material of the strategy forum (Forstra) held annually to support the strategy formulation process is also discussed in the Board of Directors forum. In addition, the Board of Directors' Meetings such as ALCO also discuss the achievement and performance of financial performance achievement.

Pillar 2 Adequate Policies, Procedures and Limit Setting

The planning, monitoring and evaluation process of corporate strategy is contained in DUJ and BPO Division of Corporate Development and Strategy and Division of Accounting and Financial Management.

Pillar 3 Risk Management Process and Risk Management Information System

  1. Implementation of Joint Planning session at the time of preparation of RBB for discussion of business strategy and plan of work program of each Division Work Unit at Head Office.
  2. Organizing Workshop on Alignment Plan of strategic work program between Head Office Work Unit in order to achieve target in RKAP and RBB.
  3. Implementation of BRI Performance Management with Balanced Scorecard approach, through determination of Key Performance Indicator (KPI) with the principle of vertical and horizontal synergy.
  4. Corporate Strategic Initiatives Monitoring by Change Management Unit. Strategic Initiatives in question is a non-routine work program that is very strategic and critical, which must be done for a target work unit can be achieved.
  5. Establishment of Corporate Plan Team in preparing BRI's Long-Term Plan for the Period of 2018-2022.
  6. At the Regional Office level, BRI has an Operational, Networking, Service & amp; Performance Management that aims to monitor the achievement of business targets in its working area.
  7. Monitoring and review of achievement of performance targets that have been defined in the RKAP, RBB and CPR are conducted at corporate level by the Corporate Development and Strategy Division on a regular basis. The review also undertaken on the achievement of work programs (Functional Work Plan - RKF) of a Uker in KP conducted to achieve the performance targets of the Budget Work Plan - RKA.

Pillar 4 Internal Control System

If there is realization of work program of a Uker still behind schedule due to linkage with other Uker, will be done alignment / acceleration work program to the Uker requested support. The alignment and acceleration of the work program is monitored by the Corporate Development and Strategy Division.

REPUTATION RISK

It is a risk that, among others, is caused by negative publications related to the Bank's business activities or negative perceptions of the Bank.

Risk Management Effort

Pillar 1 Active Supervision of Board of Commissioners and Board of Directors

Discussion on reputational risk profile and reputation risk management and as well as its follow up are discussed in RMC, and KPMR Meetings.

Pillar 2 Adequate Policies, Procedures and Limit Setting

In order to control reputation risk has been appointed SKP Division to handle any negative information. The reputation risk management process is contained in both DUJ and BPO Divisions of the Corporate Secretariat.

Pillar 3 Risk Management Process and Risk Management Information System

  1. Representative risk identification activities performed regularly by the SKP Division by looking at the number of negative reports on BRI, the number of customer complaints in print and electronic media, call center and company rating.
  2. The measurement of reputation risk aims to estimate the reputation risk vulnerability (vulnerabilities) that BRI faces. After identification process will be measured against reputation risk to assess reputation risk category by using some parameters in accordance with parameter limit in reputation Risk Profile Report.
  3. Risk monitoring conducted by the SKP Division is by regularly monitoring the number of complaints and negative news coverage in the mass media and reporting in reputation risk profile.
  4. The monitoring of reputation risk in Regional Offices is done by the OJL Sie Service Division of each Kanwil by regularly monitoring the quality of services in Kanca, KCP and BRI of the individual units, for each year and quarterly reporting on compilation of customer complaints handling reports on LKPBU.
  5. BRI's reputation risk control is, among other things, with the existence of the SE on the Information Services and Management policy, and the SKP Division exercises risk control in coordination with the relevant Services and Oversight Division to resolve negative and customer complaints according to the established SLA.

Pillar 4 Internal Control System

The Compliance Division actively socializes the impact on new regulations on business and company operations.

COMPLIANCE RISK

>The risk caused by the bank does not comply with or does not enforce any applicable laws and regulations. Compliance risk management is carried out through consistent implementation of the internal control system.

Risk Management Effort

Pillar 1 Active Supervision of Board of Commissioners and Board of Directors

Discussion on compliance risk profile and compliance risk management and its follow-up are discussed in RMC, and KPMR Meetings.

Pillar 2 Adequate Policies, Procedures and Limit Setting

  1. The compliance risk management process is contained in the DUJ or BPO of the Compliance Unit.
  2. Determination of the Special Work Unit both at Branch Offices and at Head Office to coordinate compliance risk management especially related to APU and PPT programs.
  3. Compliance risk management becomes part of the duties and responsibilities of the Risk Management Function that coordinate the implementation of Risk Management for 8 types of risk including compliance risk.

Pillar 3 Risk Management Process and Risk Management Information System

  1. The identification of compliance risk is done through the compliance risk profile report submitted by each Work Unit to the Compliance Division.
  2. Every new transaction process or product and activity that has potential compliance risks is reviewed first by the Compliance Division.
  3. Monitoring of compliance with the latest regulations is the responsibility of the Compliance Unit. Any regulatory changes, such as Laws, Ministerial Regulations, POJKs and PBIs are reviewed by the Compliance Division and assessed for impact on the company.

Pillar 4 Internal Control System

  1. The Compliance Risk Management process is supported by an adequate Information System to identify and monitor lawsuits for money laundering and terrorism-related financing. These systems include Anti Money Laundering system and Cash Transaction Report reporting system and Suspicious Transaction Report attached to Core Banking.
  2. The Compliance Division actively socializes the impact on new regulations on business and company operations.

INTRA GROUP TRANSACTION RISK

Is a risk due to the dependence of an entity, directly or indirectly, to another entity in a financial conglomerate in the context of fulfillment of the written agreement obligation or an unwritten agreement either followed by the transfer of funds and / or non-fund transfer.

Risk Management Effort

Pillar 1 Active Supervision of Board of Commissioners and Board of Directors

  1. Compliance Director of BRI as the Director in charge of the Integrated Risk Management function for the BRI Financial Conglomeration.
  2. The Board of Directors of BRI established an Integrated Risk Management Committee and has held an Integrated RMC Forum to discuss Intra-Group Risk and Intra-Group Risk Policy in the BRI Financial Conglomeration.
  3. The Board of Commissioners The Primary Entity is responsible for the effectiveness of the adoption of Integrated Risk Management and is responsible for :
    1. Direct, approve and evaluate the policy of Integrated Risk Management.
    2. Evaluate and provide direction for improvements to the implementation of the Integrated Risk Management Policy on a regular basis.
  4. The Integrated Risk Management Unit has held a regular forum with Subsidiaries to discuss the Intra-Group Risk Profile.

Pillar 2 Adequate Policies, Procedures and Limit Setting

There are Policies that have been set about Integrated Risk Management including :

  1. Nokep Decree : DIR 313 – DIR/DMR/06/2015 dated June 30, 2016 on Integrated Risk Management Policy of PT. Bank Rakyat Indonesia (Persero), Tbk And Subsidiaries.
  2. Circular Letter S. 18 - DIR/DMR/07/2015 on Risk Based Bank Rating (Risk Based Bank Rating) Guidelines PT. Bank Rakyat Indonesia (Persero) Tbk dated July 24, 2015 in which set the Intra-Group Risk Profile and Integrated Governance.
  3. Nokep Integrated Risk Management Committee Decree: 137 - DIR / DMR /12/2016 dated December 30, 2016

Pillar 3 Risk Management Process and Risk Management Information System

  1. Integrated Intra-Group Risk Identification conducted by Integrated Risk Management Unit, both quantitative and qualitative which have significant effect on BRI's Financial Conglomeration condition.
  2. Inherent Intra-Group Risk Measurement and Quality of Implementation of Intra-Group Risk Management through Integrated Risk Profile Report.
  3. Risk Monitoring and Control through the Corporate Risk Profile Discussion Forum held periodically to discuss Risk Issue of Intra-Group Risk and its follow-up plan.
  4. Intra-group transaction risk management process is adequate. In the framework of controlling the risk of intra-group transactions, the Investment Service Division has been designated as a working unit that manages the subsidiaries.

Pillar 4 Internal Control System

  1. The effectiveness of the Intra-Group Risk Culture on BRI's Financial Conglomeration.
  2. The implementation of independent review on the quality of the Implementation of Intra-Group Risk Management by the Internal Audit Unit is conducted periodically at least annually.

INSURANCE RISK

It is a risk due to the failure of the insurer to fulfill the obligations to policyholders as a result of inadequate underwriting, pricing, reinsurance, and / or claims handling.

Risk Management Effort

Pillar 1 Active Supervision of Board of Commissioners and Board of Directors

  1. Compliance Director of BRI as the Director in charge of the Integrated Risk Management function for the BRI Financial Conglomeration.
  2. The Board of Directors of BRI established an Integrated Risk Management Committee and has held an Integrated RMC Forum to discuss Insurance Risk and Insurance Risk policy in the BRI Financial Conglomeration.
  3. Direct, approve and evaluate the policy of Integrated Risk Management.
  4. Evaluate and provide direction for improvements to the implementation of the Integrated Risk Management Policy on a regular basis.
  • The Integrated Risk Management Unit has held a forum with Subsidiaries on a regular basis to discuss Insurance Risk Profile.

Pillar 2 Adequate Policies, Procedures and Limit Setting

There are Policies that have been set about Integrated Risk Management including :

  1. Nokep Decree: DIR 313 - DIR/DMR/06/2015 dated June 30, 2016 on Integrated Risk Management Policy of PT. Bank Rakyat Indonesia (Persero), Tbk And Subsidiaries.
  2. Circular Letter S. 18 - DIR/DMR/07/2015 on Risk Based Bank Rating (Risk Based Bank Rating) Guidelines PT. Bank Rakyat Indonesia (Persero) Tbk dated July 24, 2015 in which set the Integrated Insurance Risk Profile and Integrated Governance.
  3. Integrated Risk Management Committee Decree Nokep: 137 - DIR/DMR/12/2016 dated December 30, 2016.

Pillar 3 Risk Management Process and Risk Management Information System

  1. Integrated Identification of Insurance Risks conducted by Integrated Risk Management Unit, both quantitative and qualitative, which have significant effect on the condition of BRI's Financial Conglomeration.
  2. Measurement of Inherent Risk of Insurance and Quality of Implementation of Insurance Risk Management through Integrated Risk Profile Report.
  3. Risk Monitoring and Control through the Risk Profile Discussion Forum of the Subsidiary Companies conducted periodically to discuss Risk Issue of Insurance Risk and its follow-up plan.

Pillar 4 Internal Control System

  1. Cultural Effectiveness of Insurance Risk on BRI's Financial Conglomeration.
  2. The independent review of the quality of the Implementation of Insurance Risk Management by the Internal Audit Unit is conducted periodically at least annually.