Investor Presentaiton
Annual Report
AR
2022
SUMMARY
WHO WE
ARE
OUR
STRENGTH
AND
OUR
RESOURCES
Institutional strategic planning
RISKS, OPPORTUNITIES, AND PERSPECTIVES
The BCB has a well-established corporate risk management structure, with models based on best international practices. The
BCB's Integrated Risk Management Policy is available here (Portuguese only). The integrated risk management approach
adopted by the BCB seeks to comprehensively assess the institution's risk exposure, considering not only the different
types of risks incurred, but also the interaction between them. As part of the BCB's Integrated Risk Management Policy,
the information produced within the scope of corporate risk management process supports decision-making activities and
seeks to strengthen the defense of the organization's processes by identifying, evaluating, controlling, and mitigating the
possibility of losses.
Risk management at the BCB works on both organizational risk management and financial risk management.
Financial risk management uses quantitative models that focus on the assets and liabilities that add up to the BCB's balance
sheet and comprises market, credit, and liquidity risks. Market risk is the risk of financial losses due to changes in market
prices that affect the balance sheet accounts. Liquidity risk corresponds to the risk of not being able to sell an asset or close
a position at the desired time without incurring in significant costs. Credit risk is the risk associated with the default of a
BCB counterparty.
Organizational risk management refers to strategic risks and operational risks. To ensure the achievement of institutional
objectives, it is necessary to manage the risks related to the BCB's strategy. Consequently, the so-called strategic risks
correspond to the measurement of uncertainty related to potential external and internal events that may affect the
fulfillment of the BCB's institutional mission or its strategic objectives.
OUR
RESULTS
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