The risk governance model adopted by BB involves a structure of committee and subcommittees, with the participation of several areas of the Institution, contemplating the following aspects:
a. Segregation of duties: business x risk;
b. Specific structure for risk appraisal/management;
c. Defined management process;
d. Decisions at several hierarchical levels;
e. Clear rules and structure of spheres of authority;
f. Reference to best management practices.
Figure 23. Governance Structure
All decisions relating to risk management are made in a collegiate manner and in accordance with the guidelines and rules of BB.
The risk governance of Banco do Brasil, covering the Multiple Bank and its Wholly-Owned Subsidiaries, is centralized in the Global Risk Committee - GRC, formed by the Steering Committee, with the main purpose of establishing the strategies for risk management, global limits of exposure to risks and levels of compliance and allocation of capital depending on the risks.
Aiming to confer agility to the management process, the bank created Subcommittees of Credit Risk (SCR), of Market and Liquidity Risk (SMLR) and of Operating Risk (SOR), which decide and/or instrumentalize GRC, have decision-making power by delegation.
The Risk Management Directorate - RMD, linked to the Vice-Presidency of Credit, Controller's Department and Global Risk, is accountable for the management of market, liquidity, operational and credit risks. This integration promotes synergy of processes and specialization, contributing to better capital allocation, and adhering to the New Basel Agreement.
Figure 24. The Structure and the Process of Risk Management
Decisions are communicated to the intervening areas by means of resolutions that objectively express the standpoint adopted by Management, guaranteeing application at all levels of the Bank.