Adequacy process of identiication, measurement, monitoring and control of risk management

GooD CoRpoRAte GoVeRNANCe • tujuan utama dalam pengelolaan faktor-faktor risiko utama tersebut di Bank adalah mengidentiikasi, mengukur, memantau dan mengendalikan jalannya aktivitaskegiatan usaha Bank dengan tingkat risiko yang wajar secara terarah, terintegrasi, dan berkesinambungan, sehingga manajemen risiko berfungsi sebagai ilter atau pemberi peringatan dini early warning system terhadap kegiatan usaha Bank yang senantiasa tidak lepas dari risiko. Kerangka pengelolaan risiko Kerangka pengelolaan risiko Bank mencakup 4 empat pilar sebagai berikut: 1. pengawasan Aktif Dewan Komisaris dan Direksi Bank melaksanakan penerapan Good Corporate Governance GCG secara berkesinambungan. 2. Kecukupan Kebijakan, Strategi dan Kerangka Manajemen Risiko serta Limit Manajemen Risiko - Arah kebijakan manajemen risiko lebih diprioritaskan terhadap pengelolaan Risiko Kredit baik secara transaksional maupun portofolio dan Non Risiko Kredit yang berdampak pada kerugian keuangan rentabilitas dan permodalan Bank. - Bank melakukan kajian dan penyempurnaan terhadap kebijakan Risk Appetite, Risk Tolerance, dan Risk Limit Bank serta kebijakan terkait lainnya yang bersifat strategis. - Bank melakukan pemantauan atas implementasi pedoman di Bidang Kredit, operasi, treasury, dan bidang lainnya yang berkaitan dengan Manajemen Risiko. - Bank melakukan review dan evaluasi terhadap pedoman, kebijakan, dan prosedur manajemen risiko secara periodik. 3. Kecukupan Proses Identiikasi, Pengukuran, pemantauan, dan pengendalian Risiko serta Sistem Informasi Manajemen Risiko Bank melakukan identiikasi risiko, pengukuran risiko, pemantauan risiko, pengendalian risiko serta sistem informasi manajemen risiko. 4. Sistem pengendalian Internal yang Menyeluruh Bank memastikan kepatuhan terhadap ketentuan eksternal dan internal yang berlaku compliance risk, tersedianya informasi manajemen dan keuangan yang akurat dan handal, efektivitas dan eisiensi kegiatan operasional Bank, serta efektivitas budaya risiko dan budaya kepatuhan pada setiap jenjang organisasi Bank. Kerangka pengelolaan risiko tersebut dimaksudkan untuk mengendalikan risiko yang dihadapi dan mengantisipasi serta mengendalikan potensi kerugian • The main objectives in managing main risk factors of the Bank above are identifying, measuring, monitoring and controlling the performance of activities of the Bank’s business within a risk level that fairly directed, integrated and balanced, thus risk management functions as a ilter or an early warning system towards the Bank’s business activities that are constantly exposed to risk. Framework for Managing risk the framework for managing the Bank’s risk covers 4 four pillars as follows: 1. Active Supervision by the Board of Commissioners and Directors the Bank performs a susainable implementation of Good Corporate Governance 2. the adequacy of Risk Management policies, procedures and limits - the risk management policy direction is to prioritize the Credit Risk management on a transactional as well as portfolio basis, as Non-Credit Risk that has an impact on Bank’s rentability and capital. - Bank performs review and improvement on policies of Risk Appetite, Risk tolerance and Risk Limits of the Bank as well as other related policies deemed strategic. - Bank conducts monitoring on the implementation of guidelines in the Credit, operations, treasury sectors, as well as other sectors related with Risk Management. - Bank conducts review an evaluation towards risk management guidelines, policies and procedures on a periodic basis. 3. Adequacy process of identiication, measurement, monitoring and control of risk management information system Bank performs risk identiication, measurement, monitoring, control as well as information risk management. 4. overall internal control system Bank ensures the compliance of prevailing external and internal provisions compliance risk, the availability of accurate and reliable management and inancial information, efectiveness and eiciency of the Bank’s operational activities, as well as efectiveness of risk culture and compliance culture at all levels of the Bank the risk management framework mentioned above is meant to control risks being faced and to anticipate and control the potential expected loss as well as 336 BANK ARTHA GRAHA INTERNASIONAL Laporan tahunan 2016 TaTa KELoLa pErUSaHaan yang diperkirakan expected loss maupun kemungkinan kerugian yang tidak diperkirakan un-expected loss dari berbagai risiko yang dikelola oleh Bank sesuai ketentuan regulator, yaitu risiko kredit, risiko pasar, risiko likuiditas, risiko operasional, risiko hukum, risiko reputasi, risiko stratejik, dan risiko kepatuhan. Proil Risiko Bank Artha Graha Internasional memahami bahwa semua kegiatan danatau transaksi bank, baik yang berasal dari aset maupun pasiva dapat berpotensi menimbulkan berbagai jenis risiko, seperti: risiko kredit, risiko pasar, risiko likuiditas, risiko operasional, risiko hukum, risiko stratejik, risiko kepatuhan, dan risiko reputasi. Besar kecilnya risiko itu akan sangat tergantung pada berbagai faktor yang terkait seperti kemampuan dan keahlian Manajemen dalam mengelola risiko. oleh karenanya, Bank Artha Graha Internasional di bawah Direktur Kepatuhan memiliki Divisi Manajemen Risiko yang berfungsi mengelola setiap risiko yang dihadapi dengan baik, sehingga kinerja Bank dapat terhindar dari potensi kerugian yang material. Jenis risiko yang Dihadapi Bank dan Upaya pengelolaannya Sesuai dengan peraturan Bank Indonesia tentang penerapan Manajemen Risiko bagi Bank Umum serta sejalan dengan road map Bank Indonesia mengenai penerapan manajemen risiko pada perbankan nasional secara bertahap dan berkelanjutan, hingga akhir tahun 2016 Bank telah melakukan berbagai pengembangan dan penyempurnaan sesuai dengan ketentuan yang berlaku, antara lain terkait dengan Kebijakan dan prosedur Manajemen Risiko, Kajian Analisa Risiko, pengukuranpenilaian Risiko, pengelolaan Data Base Risiko dan Budaya Risiko Risk Culture. terdapat 8 jenis risiko yang dihadapi perseroan dan harus dikelola dengan baik. Kedelapan jenis risiko tersebut disebut inheren risk yang meliputi: risiko kredit, risiko pasar, risiko likuiditas, risiko operasional, risiko hukum, risiko stratejik, risiko kepatuhan, dan risiko reputasi. Adapun penjelasan mengenai risiko-risiko tersebut dan upaya pengelolaannya adalah sebagai berikut. 1. Risiko Kredit Risiko Kredit dideinisikan sebagai risiko akibat kegagalan pihak lain dalam memenuhi kewajiban kepada Bank, termasuk Risiko Kredit akibat kegagalan debitur, Risiko konsentrasi kredit, counterparty credit risk, dan settlement risk. the possibility of unexpected loss from various risks managed by the Bank, in accordance with regulatory provisions, namely credit risk, market risk, liquidity risk, operational risk, legal risk, reputation risk, strategic risk, and compliance risk. Risk Proile Bank Artha Graha Internasional understands that all activities andor bank transactions, both originating from assets as well as liabilities, have the potential to create various types of risk, such as: credit risk, market risk, liquidity risk, operational risk, legal risk, strategic risk, compliance risk and reputation risk. the size of the risk will be dependent on various related factors such as the capability and expertise of Management in managing risk. thus, Bank Artha Graha Internasional under the Compliance Director has a Risk Management Division whose function is to manage well all risks of the Bank, in order for the Bank to be protected from potential material loss. Types of risks Faced by the Bank and Managing Eforts In accordance with Bank Indonesia regulation on Implementation of Risk Management for Commercial Banks, and in alignment with Bank Indonesia road map on implementing risk management at national banks in stages and continuous basis, as of year-end 2016 the Bank has performed various developments and improvements in accordance with prevailing provisions, among others, related with policy and procedure of Risk Management, Risk Review Analysis , Risk Database Management and Risk Culture. there are 8 types of risk faced by the Company and must be managed well. the eight types of risks are named as inherent risk and cover: credit risk, market risk, liquidity risk, operational risk, legal risk, strategic risk, compliance risk, and reputation risk. the following explains in further detail the types of risk and the efort to manage them. 1. Credit Risk Credit Risk is deined as risk arising from the default of a counterparty in fulfulling obligations to the Bank, including Credit Risk arising from a debtors default, Credit Concentration Risk, Counterparty Credit Risk and Settlement Risk. 2016 Annual Report BANK ARTHA GRAHA INTERNASIONAL 337 GooD CoRpoRAte GoVeRNANCe Selama tahun 2016, penerapan manajemen risiko kredit telah dilakukan oleh Divisi Manajemen Risiko di berbagai aktivitas yang tereskpos risiko kredit dan mencakup antara lain; analisa dan tinjauan manajemen risiko terhadap sektor-sektor ekonomi khususnya sektor ekonomi yang akan dibiayai Bank pada tahun 2016, penetapan dan pemantauan credit risk appetite dan credit risk tolerance sesuai Rencana Bisnis Bank tahun 2016, pelaksanaan review independen terhadap permohonan kredit dan setelah pencairan kredit individual sesuai dengan batasan dan ketentuan yang ditetapkan oleh Direksi, pengukuran dan review terhadap risiko portofolio kredit secara periodik, tindak lanjut pemenuhan atas temuan otoritas Jasa Keuangan terkait risiko kredit, implementasi serta penyempurnaan Credit Risk Management System berupa Credit Risk Rating CRR danatau Credit Risk Scoring. Untuk menunjang pengukuran risiko kredit sesuai dengan metodologi internal yang akan digunakan, Divisi Manajemen Risiko berupaya mengumpulkan data base kredit secara berkelanjutan dan menyempurnakan proses serta prosedur internal, sehingga diharapkan Bank dapat memperoleh data yang akurat, handal dan terpercaya untuk menghasilkan nilai parameter Probability of Default pD, Loss Given Default LGD, dan Exposure at Default eAD. Divisi Manajemen Risiko juga telah melakukan stress testing risiko kredit secara periodik untuk mengetahui ketahanan kecukupan modal Bank terhadap kenaikan Non performing Loan NpL gross dan net dan pelaksanaan write of sesuai pedoman Manajemen Risiko Kredit Bank serta skenario lainnya yang diminta oleh Direksi danatau otoritas Jasa Keuangan. Selain itu, Divisi Manajemen Risiko juga melaksanakan simulasi mapping kredit dengan nilai nominal tertentu berdasarkan penilaian parameter yang ditetapkan untuk mengetahui proyeksi kualitas kolektibilitas kredit debitur existing. perhitungan kebutuhan modal yang diperlukan untuk risiko kredit telah dilakukan sesuai dengan ketentuan Bank Indonesia yang berlaku, yaitu dengan Standardised Approach SA. Sedangkan penilaian Proil Risiko Kredit telah dilakukan sesuai ketentuan Bank Indonesia dan atau otoritas Jasa Keuangan yang berlaku dan telah disampaikan kepada otoritas Jasa Keuangan secara tepat waktu bersamaan dengan proil risiko lainnya. During 2016, the implementation of credit risk was performed by the Risk Management Division at various activities exposred to credit risk and covering, among others: risk management analysis and review towards economic sectors particularly economic sectors that are inanced by the Bank in 2016, setting and monitoring of credit risk appetite and credit risk tolerance in alignment with the Bank’s 2016 Business plan, perform independent review towards credit proposals, and subsequent disbursement of individual credit in accordance with limits and terms decided by Directors, measurement and review towards credit portfolio risk on a periodic basis, follow-up of Financial Services Authority indings related to credit risk, implementation and improvement of Credit Risk Management System in the form of Credit Risk Rating CRR andor Credit Risk Scoring. In an afort to support the measurement of credit risk in conjunction with internal methodology to be used, the Risk Management Division puts efort to collect credit database on a continuous basis and improves internal process and procedures, hence it is hoped that the Bank can obtain data that is accurate, reliable and trusted to generate parameter values of probability of Default pD, Loss Given Default LGD and exposure at Default eAD. the Risk Management Division has conducted stress testing of credit risk on a periodic basis to understand the resilience of the Bank’s capital adequacy towards the increase in non-performing loans gross and net NpL and the implementation of the Write Of in accordance with Bank’s Credit Risk Management Guidelines and other scenarios requested by the Board of Directors or the Indonesia Financial Services Authority. In addition, the Risk Management Division also carries out credit mapping simulation with a certain nominal value to determine the projection of existing debtor credit collectability quality based on an assessment of certain parameters. the calculation of capital requirements required for credit risk has been conducted in accordance with the applicable Bank Indonesia regulation, namely the Standardized Approach SA. Meanwhile the credit risk proile assessment has been conducted in accordance with the applicable Bank Indonesia provision and has been submitted to Bank Indonesia in a timely manner along with other risk proiles. 338 BANK ARTHA GRAHA INTERNASIONAL Laporan tahunan 2016