PTEN
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PTEN

INTERNAL CONTROLS

Based on CMN Resolution 2,554/1998, published by the Central Bank of Brazil, Banpará defines Internal Controls as a systematic process, conducted by the board of directors, executive board and employees, established to provide reasonable security for achieving the goals related to its operations, disclosure and compliance, such as:

  • • Effectiveness and efficiency of operations;
  • • Reliability of financial reports;
  • • Compliance with rules and regulations.

The Bank‘s Internal Control System is segmented based on the main interrelated elements of the Committee of Sponsoring Organizations (COSO), namely:

  • Internal Environment
  • Setting of Goals
  • Identification of Events
  • Risk Assessment
  • Response to Risk
  • Control Activities
  • Information and Communications
  • Monitoring

The Bank uses the Control and Risk Self-Assessment (CRSA) methodology, which includes the assessment of risks and threats to business goals; the identification of weaknesses and residual risks and the improvement of controls.

 

Internal Control Structure of the Bank

Board of Directors and Executive Board:
  • Responsible for implementing an effective internal control structure by establishing control activities for all business levels of the institution;
  • Responsible for establishing the goals and procedures related to the institution‘s business levels and the systematic verification of the adoption and compliance with the procedures defined;
  • Responsible for promoting high ethical and integrity standards and an organizational culture which highlights the importance of internal controls and the role of each person in the process.
Internal Audit:
  • Responsible for providing Banpará‘s top management with an independent, objective and careful assessment of management processes, considering the strategies, goals and business risks, in order to add value to the organization and contribute to the improvement and effectiveness of the Bank‘s governance structure, risk management, controls, and compliance with internal and external regulations.
Internal Control and Operational Risk Committee
  • To analyze and make recommendations on matters related to the best corporate governance practices which will ensure the efficiency and effectiveness of internal controls, as well as on initiatives to mitigate the risks identified in operational processes and new products and services in order to promote the continuity of the business.
Superintendency of Financial Risk Management (Suris):
  • Responsible for managing the Bank‘s corporate risk management, in order to eliminate the possibility of occurrence of losses related to financial and capital management risks.
Superintendency of Operational Risk Management (Surop):
  • Responsible for managing the Bank‘s operational risk management, in order to eliminate the possibility of occurrence of losses caused by operational failure and ensure business continuity.
Center of Internal Control Compliance (Nucic):
  • Responsible for managing the set of procedures necessary for the implementation of Internal Control and Compliance Policies and internal control procedures.
Managers:
  • Responsible for monitoring the processes under their responsibility, seeking regulatory compliance, adoption of appropriate controls and the prevention/treatment of the risk events identified, acting in compliance with the institution‘s ethical standards in order to achieve the Bank‘s strategic goals.

Last Update on June 07, 2022