Sustainability - bicbanco

34 Annual and Sustainability Report 2011
STOCK MARKET RISKS (BM&FBOVESPA)
The Bank does not carry out significant operations in
the stock market. On December 31, 2011, this risk
accounted for 0.4% of the required reference equity.
Exposure to Stock Market risks is in the treasury’s trading
portfolio position. The portfolio may contain deals
with stock and futures that are subject to volatility risks,
which may cause an impact on results.
INFLATION RISK
Inflation risk is a result of positions for securities or
loans indexed to price indices, with imperfect or nonexistent
hedging. The risk management model used
by the Bank and the exposure policy prevent the risk
of major impacts, even in adverse situations, as was
described in the explanations and justifications of this
chapter. In its business, BICBANCO operates with
minimum gaps between assets and liabilities, in addition
to hedging all of its operations pegged to indexes
such as the CDI, exchange rates and inflation. Based
on this position, no volatility is expected to determine
considerable changes to results, since BICBANCO’s
gains as a financial institution are concentrated on operations
spreads.
The Social and
Environmental Risks Policy
establishes actions and
procedures that should be
complied with at every stage
of relations with the client.
SOCIAL AND ENVIRONMENTAL RISK
GRI 1.2, FS1, FS2, FS4, DMA HR – Indigenous Rights, DMA HR – Investment
and Procurement Practices, DMA HR – Freedom of Association and Collective
Bargaining, DMA HR – Child Labor, DMA HR – Forced and Compulsory Labor,
DMA EC – Indirect Economic Impacts and HR9
BICBANCO has a specific policy for these risks, which integrates
the social and environmental issue into business
and is aimed at evolution in the relationship between
financial/commercial activities and the environment/society.
In line with its stakeholder relations strategy, standards
also include aspects of corporate governance.
The Social and Environmental Risks Policy establishes
actions and procedures that should be observed at
every stage of client relations, from the client acceptance
process to approval of credit, investments and
maintenance of the relationship. The goal is to manage
indirect impacts and prevent social and environmental
factors related to clients from influencing the
Bank’s performance and the Bank’s corporate reputation
or from entering into conflict with the principles
adopted and defended by the Bank.
To intensify the effectiveness of guidelines and risk control,
specific internal training was given in 2011, spreading
social and environmental values in the Bank’s culture
and among the stakeholders with which it interacts.