2011 Annual Report - BDO

The committee consistently reviews the scope and plan of the Internal Audit,External Audit and Compliance Units, the significant audit findings as wellas management action on such findings, the report on compliance withregulatory bodies and financial reports. It monitors the resolution of findingsand ensures that internal audit and compliance departments are adequatelystaffed and are provided with proficiency improvement programs.In 2011, the Committee conducted a self-assessment program and anevaluation of the performance of the Internal Audit Division, Compliance andAML Unit and the External Audit as part of its good governance practices.Chairman: Johnip G. CuaMembers: Pedro E.O. Roxas, Alfonso A. Uy, Violeta O. LuYmThe Corporate Governance Committee assists the Board of Directorsin shaping the Bank’s corporate governance policies and practices,recommends applicable guidelines, and monitors compliance with saidpolicies and practices. The Committee is composed of at least three (3)members of the Board, two (2) are independent directors.CORPORATEGOVERNANCECOMMITTEEThe Committee ensures that all employees maintain the highest standards ofcompliance with all legal, regulatory and internal requirements. Employeesare required to observe strict standards of professional conduct at all times.A well defined compliance culture is critical in the implementation of policiesin selecting employees, developing training tools, defining processes andrules for supervisory and control systems.During the year, the Committee conducted an annual performanceevaluation of the board and executive management in compliance with BSPCircular Nos. 456 and 592, as well as with SEC Memorandum Circular No. 2,Series of 2002. The periodic evaluation was done through a self-assessmentprocess involving the members of the Board.Chairman: Nestor V. TanMembers: Josefina N. Tan, Johnip G. CuaRISK MANAGEMENTCOMMITTEEThe Risk Management Committee is responsible for the Bank’s riskmanagement program, which includes policy development and oversightover the Bank’s credit, market, liquidity, and operating risk exposures. Itoversees the system of limits of discretionary authority that the Boarddelegates to management, ensuring that these are observed and breaches,if any, are immediately corrected.The Committee ensures a prudent and intelligent approach to risk-taking thatbalances risk and return while optimizing the allocation of capital. Througha pro-active risk-management culture, a framework for reporting risk to theBoard including the assessment on the probability and potential impactof each identified risk exposure of the Bank is established. These reportsinclude information on portfolio concentrations, value at risk measurements,and breaches on limits.The Committee is composed of at least three (3) Directors who possessa range of expertise as well as adequate knowledge of the Bank’s riskexposures, and meets at least once a month or as may be required toperform its duties and responsibilities.www.bdo.com.ph 19