Capital and Risk Management

Banpará, in order to ensure adherence to the laws, regulations, codes of conduct and standards in force, and to adopt the best practices of Risk Management, Capital, Controls and Compliance, in line with the recommendations of Basel, Law 9.613 / 98 and its amendments , CMN Resolutions No. 2,554 / 98 and its amendments and 4,557 / 17 and its amendments, created the Financial Risk Management Superintendence - SURIS, the unit responsible for mitigating the possibility of losses related to financial and socio-environmental risks and capital management ; the Compliance Internal Control Nucleus - NUCIC, responsible for ensuring, together with the other areas, the adequacy, strengthening and functioning of the Internal Controls System, the Compliance function and the Prevention of Money Laundering and Anti-Corruption, aiming to mitigate the risks, as well as disseminating a culture of controls to ensure compliance with existing laws and regulations; and the Operational Risk Management Superintendence - SUROP, responsible for mitigating the possibility of losses caused by operational failure and ensuring business continuity, linked to the Control, Risk and Investor Relations Department - DICRI (CRO).

Risk is defined as any situation that may affect the company‘s ability to achieve its objectives.

Corporate and capital risk management combines Basel recommendations, best practices adopted by the financial industry, and internal and external standards that aim to generate systematized information that will serve as a basis for the identification, assessment, measurement, mitigation and monitoring of the various organizational risks.

In order for the information from the area responsible for risk and capital management to reach the due breadth, as well as the mitigating actions to be implemented in a timely manner, reports produced monthly, quarterly and semi-annually, or extraordinarily in a situation are made available to the Governing Bodies. potential risk exposures requiring immediate corrections.

Banpará has been constantly improving the management of its corporate risks, in an integrated manner, allowing it to achieve its objectives through an acceptable level of risk exposure, without compromising the good performance of the business.

In accordance with art. 57 of CMN Resolution 4,557, of February 23, 2017, are attributions of the Statutory Risk Committee:

I. Assist the Board of Directors in risk and capital management, providing the Board with a comprehensive and integrated view of the risks and their impacts on the Institution;

II. Evaluate proposals for revision of the Risk Appetite Statement (RAS) and the strategies for its management, considering risks individually and in an integrated manner;

III. Supervise compliance, by the Collegiate Board, under the terms of the Risk Appetite Statement (RAS);

IV. Assess the degree of adherence of the processes of the risk management structure to the policies related to risk and capital management;

V. Supervise the performance and performance of the Risk Officer;

VI. Propose, at least annually, recommendations to the Board of Directors on:

a. risk management policies, strategies and limits;

b. the capital management policies and strategies, which establish procedures aimed at maintaining the Reference Equity (PR), Level I and the Main Capital, as dealt with in BACEN Resolution No. 4,192, of March 1, 2013, at levels compatible with risks incurred;

c. the stress test program, according to the current regulation;

d. policies and strategies for business continuity management;

e. the Liquidity Contingency Plan;

f. the Capital Plan and the Capital Contingency Plan;

g. reports dealing with risk and capital management processes.

VII. To become aware of the work performed by the internal or external audits, relevant to risk and capital management and its results.

Single paragraph. Committee members will have independence in the exercise of their duties, and must keep the information received confidential.

Risk Management and Capital Management Structure

The Risk Director (CRO), as provided in art. 56-A, paragraph 1, of CMN Resolution No. 4,745 / 2019 and according to the competence contained in the Internal Regulations, is responsible for the information regarding Banpará‘s risk and capital management structure, below the organizational structure of the Risk Management and Capital Management Structure:

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