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Investor Presentaiton

Annual Report AR 2022 SUMMARY WHO WE ARE OUR STRENGTH AND OUR RESOURCES OUR RESULTS GOVERNANCE Governance, structure, and integrity the The BCB's governance practices follow recommendations of federal control bodies, governance codes and international bodies, in addition to mirroring, as far as possible, the best practices of other central banks. The BCB governance model represents the desirable balance between compliance and performance, translated into governance practices divided in six fields: autonomy, leadership, strategy, accountability, integrity, transparency. and The BCB's ICT specific governance model is formed by a set of structures, mechanisms, and interfaces where roles and responsibilities are mapped. The guidelines and actions related to governance are formalized in policies and other regulations, such as the Information Security Policy, Information Governance Policy, Integrated Risk Management Policy, Transparency Policy, Internal Audit Policy, and in the Master Plan for Information and Communication Technology. The Compliance Policy, revised in 2022, indicates the BCB's commitment to adhere to legal rules and standards of conduct. Compliance management enables the BCB to keep the inventory of obligations up to date, which currently has more than nine hundred regulations, to identify new vulnerabilities, to plan and monitor corrective actions. Throughout 2022, activities were also coordinated aiming towards the adherence to the Brazilian Data Protection Law (LGPD), such as the preparation and release of the second volume of the Data Protection Impact Assessment. The BCB's governance is assessed on a regular basis by the TCU through the Integrated Public Governance and Management Index (iGG). The scores obtained by the BCB and other publicagencies are available on the TCU's website. In addition to that assessment, the BCB has established improvements in its Governance Index (IgovBC) in 2022. The IgovBC seeks to assess the level of maturity of corporate governance at the BCB, equitably measuring performance and compliance mechanisms. After four years, the indicator was updated to better reflect the institution's governance model. The practices that make up the indicator were extracted from several sources, such as the TCU's governance questionnaire, the Governance Policy of the Federal Public Administration, and the legislation of other central banks. The IgovBC is part of the set of thirty Key Performance Indicators (KPIs) of the BCB. The following section provides more information about the IgovBC and the other KPIs. INTEGRITY High standards of conduct and promotion of integrity are part of the BCB's daily routine. Those standards translate in actions such as the Integrity Program, the adoption of a Code of Conduct, the promotion of actions related to active transparency and access to information. Also worthy of mention are the actions for the handling of complaints and the adoption of accountability, among others. The BCB Integrity Program, launched in 2018, presents a structured set of measures aimed at the adherence to values, principles, and norms of ethical and disciplinary conduct. In addition, it brings together measures for the prevention, detection, punishment, and remediation of fraud. It has three pillars: principles, guidelines, and the Integrity Plan. The biennial Integrity Plan (2022/2023) consists of 29 actions. In 2022, nine actions were implemented. Some of the actions that stand out are the revision of the BCB Employees' Code of Conduct and the approval of the new regulation for the BCB Integrity Committee. 14
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