Annual Report
2013
PT Bank Mandiri Persero Tbk.
The application of risk management in Bank Mandiri through the ERM framework uses a two-prong approach, namely, risk management through capital and risk management through operations. In this way, it is expected to
achieve hierarchical risk management in the overall management of the business. The four principal components supporting the application of this approach are Organization Human Resources, Policies Procedures, Systems
Data, and Methodology Models Analytics.
1. ORGANIZATION HUMAN RESOURCES
Bank Mandiri’s Risk Management Unit is responsible for managing the risks faced by the Bank, including developing the support tools needed by business processes and risk management. In addition, there is a line unit that acts as
the risk counterpart for business units based on the “four-eyes” lending process.
Essential to the successful implementation of the risk management function are risk awareness and suicient technical capabilities on the part of all line units in Bank Mandiri. This is the common responsibility of, and involves
all units in, Bank Mandiri. Consequently, regular internal training is provided through the Governance, Risk Compliance GRC Academy, both for the staf of the Directorate of Risk Management as well as other Directorates.
In addition, every year the Bank organizes risk management information campaigns, discussion forums, internships, and programs that are consistent with the internalization of the Bank Mandiri corporate culture.
2. POLICIES PROCEDURES
Bank Mandiri has adopted the Bank Mandiri Risk Management Policies KMRBM to serve as the principal guidelines for the application of risk management. At the more speciic level, the Bank has adopted separate policies and
procedures, for example, speciic policies and procedures for credit, treasury, and operations. All the policies and procedures that have been adopted by Bank Mandiri in this respect are based on hierarchical risk management in all
of the Bank’s operations. The policies and procedures are reviewed and updated at least once a year.
The application of risk management in Bank Mandiri involves optimizing the use of business judgment along with an analysis of historical conditions with the aim of applying hierarchical risk management processes to our business.
3. SYSTEM DATA
The risk management system has been developed to support greater eiciency in business processes so as to speed up the decision-making process while at the same time adhering to prudential principles. In order to
maintain the integrity and quality of data, Bank Mandiri has established an Integrated Processing System and Loan Origination System which is designed to improve the eiciency of the lending process and maintain data quality
in the corporate, commercial and retail segments. The system also includes an Integrated Collection System to improve collection productivity, particularly in the consumer and retail segments. For treasury and asset liability
management, Bank Mandiri uses the Summit System and the Sendero System to manage its trading book and banking book risks. So as to provide an an accurate overview of the Bank’s risk proile as parent company and its
risk proile as consolidated and integrated with its subsidiaries, Bank Mandiri has established the Bank Mandiri Risk Proile System RPX, which is a web-based system that is designed to accelerate access and simplify control.
risk management
Annual Report
2013
PT Bank Mandiri Persero Tbk.
risk management
To integrate risk management on a bankwide basis, Bank Mandiri has adopted the ERM system so as to facilitate the holistic monitoring of risk management, including calculating the capital needed to cover all types of risk. The ERM
system has the capacity to calculate capital charges using the Standardized Approach and Advanced Approach, and to apply operational risk management tools, active portfolio management, stress testing and value-based
management.
4. METHODOLOGY MODEL ANALYTICS
