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Investor Presentaiton

Annual Report AR 2022 SUMMARY WHO WE ARE OUR STRENGTH AND OUR RESOURCES OUR RESULTS Institutional strategic planning Operational risk management is carried out at all the BCB levels and units in an integrated manner. The management of these risks involves, among other aspects, the identification and assessment of events that may affect the achievement of BCB's objectives. Threat management is necessary to keep risks at a level compatible with the BCB's conservative risk appetite. The result of the assessment is illustrated as a risk matrix and, based on it, the process managers must anticipate the appropriate response to each identified risk. In 2022, 40 risk response plans were implemented. Another 16 risk mitigation plans are expected to start in 2023. Additionally, business continuity management provides a framework for building organizational resilience. It identifies and plans what needs to be done so that the BCB continues to fulfill its obligations in the event of a serious incident that interrupts its operations. This management seeks to create and maintain response plans in case of interruption of processes considered critical. In 2022, the operationalization of the Business Contingency Site for the BCB's Senior Management (SCN-AA) was completed and specific Business Continuity Plans for the regional management branches began to be developed. Both actions contribute to increasing the BCB's operational resilience in response to disruptive events. The Three Lines of Defense Model works within the organization's overall risk and control framework. Each line of defense carries out controls and checks for specific purposes. 24 24
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