Risk Management

The Company has established a Risk Management System since the beginning of the Company’s establishment and continues to be developed in line with business growth. The system is run in accordance with the directives of the Board of Directors and under the supervision of the Board of Commissioners to ensure effective, adequate, and appropriate implementation of the Company’s characteristics, complexity, and risk profile. The Company continuously strenghtened the Risk Management System that is implemented by the Internal Audit Unit annually, and which is a support unit for achieving the predetermined targets to produce sound asset quality. There are several aspects of risk management implementation to ensure continuous risk control, namely:

  • Active supervision by the Boards of Commissiones and Directors.
  • The continuous establishment and development of clear and comprehensive risk management policies and procedures.
  • Supervision to ensure the processes of identification, measurement, monitoring, and risk control are carried out in accordance with business development and the prevailing laws and regulations.

The Company continuously strives to implement risk management in a comprehensive, integrated, and effective manner with the following objectives:

  • Supporting the implementation of business in accordance with the purposes and objectives of the Company.
  • Assisting the management by providing information that can be used to make informed and risk-based decisions.
  • Assisting in establishing adequate reserves to anticipate measured risks.
  • Avoiding the potential for greater loss.
  • Identifying and maximizing the existing business opportunities.

Risk Management System Evaluation
To ensure the updating of risk data and to assess the adequacy of design and effectiveness of risk management implementation in the Company, regular risk management system evaluations are periodically conducted. This is also performed to assess the risk maturity level of the Company and as a reference for future improvement.