PA - Banco Security

4º Credit Management
Basically, this is the phase where the Credit Management Area senior management is involved. It oversees the correct rating process
for our clients by the business executives, and review the month close provisions ensuring that they take place with no errors and
represent the reality of the Bank’s portfolio.
Also, this part of the process deals with the Commercial Areas to maintain the number of transactions with qualifications in
accordance with the possible minimum levels as the overdue transactions. There is also a strict control over appraisals of assets
pledged on behalf of the Bank.
5º Collection
This is the phase where the Normalization Area performs different loan collection activities related to problem loans and is involved
in the legal and pre-legal collection.
6º Control
In this phase, the Credit Risk Control Area focuses on maintaining a global vision of how the aforementioned credit process phases
are working. The Control phase includes the review and the audit of the current credit policies, the performance of the analysis areas
and committees, and also the appropriate loan management.
C.2 Description per Area
Personal Credit Risk Assistant Management
The Personal Credit Risk Assistant Management is involved in the first three phases of the credit process in the personal banking
segment. Its main duties include an active involvement in the definition of the target market and advertising campaigns, the definition
of credit risk policies for such segment, design, maintenance and calibration of different scoring models, the involvement in different
levels of approval of operations, and definition of the commercial area’s attributions, among other things.
Corporate Credit Risk Analysis Management
This area is the largest area in the Risk Division and is responsible for participating in the first two phases of the process. It is strongly
focused on the second phase, that is, the analysis and evaluation of clients. Its main role is preparing different types of financial
analysis of clients depending on their size, complexity and amount, and adapting to the needs of the commercial area in regard to
depth and timing of response to keep the Bank’s competitiveness. This area is also responsible for sector reports, optimum portfolio
analysis, and country risk studies.
Corporate Credit Decision Making Assistant Management
Its duties are participating in the credit decision making in the various committees where it is involved, and also developing credit
risk policies and levels of authority in the commercial area. This area is also responsible for corporate credit risk models; management
of all projects in the Credit Risk Division, including regulatory projects; definition of all policies implying a level of credit risk; new
products development; and management of the division’s goal achievement, among other things.
Credit Normalization and Management
This Group, which is involved in the last three phases of the credit process, is responsible for the Credit Risk Management area, whose
main duty is the provisions process. It is also responsible for the Risk Control Area, whose main duty is reviewing the full compliance
with policies and procedures, evaluating and providing follow-up on the portfolio from the point of view of risk as required. Also, this
group is responsible for the recovery of delinquent loans. For this purpose it has skilled personnel, lawyers and collection companies.