The Company’s governance implementation is based on the five basic principles of GCG. During its implementation, the Company carries out periodic self-assessments of 11 GCG factors as regulated by the Regulator. The Board of Commissioners’ assessments show that the Company’s implementation of GCG principles is good, as reflected in the self-assessment results for the GCG implementation, which reached Rank 2 (Good). These assessments are carried out periodically and are not only limited to the scope of the parent company, but are also carried out together with subsidiaries as part of the BRI financial conglomerate. The self-assessment results for the Integrated GCG implementation reached Rank 2 (Good). This reflects that BRI Management has implemented GCG by following the aspects of governance structure, governance process and governance outcomes, and these are generally categorized as Good. In 2023, the Company’s GCG assessment was also carried out by external parties with the following results: 1. ASEAN Corporate Governance Scorecard (ACGS) BRI received awards in the form of TOP 3 Public Listed Company in Indonesia and ASEAN Asset Class in the 2023 ACGS ranking held by the Asean Capital Market Forum (ACMS). 2. Corporate Governance Perception Index (CGPI) Based on the 2023 CGPI assessment results by The Indonesian Institute for Corporate Governance (IICG), BRI was ranked “Most Trusted Company “. The commitment to implementing Integrated Governance in the BRI Group was further proven by the participation of Subsidiaries in the CGPI Award, where 1 (one) Subsidiary Company received the “Very Trusted” title and 4 (four) others received the “Trusted” title. 3. S&P Global Corporate Sustainability Assessment (CSA) BRI received S&P Global CSA assessment results with a score of 63 in 2023. The Company’s GCG implementation has been running well, as can be seen in the following components. Implementation of Compliance Functions The implementation of BRI’s Compliance Function refers to the Financial Services Authority Regulation Number: 46/POJK.03/2017 dated July 12, 2017 concerning the Implementation of Commercial Bank Compliance Functions. The Board of Directors, through the Compliance Function Business Unit, regularly reports on the implementation of the compliance function to ensure that the policies, systems and procedures, as well as business activities are carried out by BRI, both corporately and operationally, and are in accordance with regulatory provisions and always prioritize the precautionary principle. The Board of Commissioners together with the Board of Directors continues to encourage improved implementation of the compliance function at all levels of the organization. The Board of Commissioners always provides advice to the Board of Directors and all Brilian People to continuously strengthen Compliance Culture, always pay attention to Standard Operating Procedures (SOP), and operational technical instructions, to carry out monitoring and supervision so that the imposition of fines by Regulators can be reduced and minimized. The Board of Commissioners also urges the Board of Directors to make efforts to complete commitments and follow up on audit results by external parties and regulators at the first opportunity. The Board of Commissioners also requests that the Board of Directors always monitors and encourages the updating of customer data, and to continue to pay attention to APU and PPT policies when providing digital services. The Company’s compliance risk profile is at a composite rating of 2 (Low to Moderate). The Board of Commissioners’ opinion is that the Company’s Compliance Function has gone well, but awareness and a culture of compliance must continue to be increased at all levels. The Board of Commissioners has also advised the Board of Directors to continue to make improvements to Corporate Governance (GCG), especially when reporting compliance and fraud control. Anti-Fraud Strategy BRI has an Anti-Fraud Strategy policy, as adapted to OJK Regulation Number: 39/POJK.03/2019 concerning Implementation of Anti-Fraud Strategy for Commercial Banks, which is then outlined in the Company’s internal policy. This policy is a form of commitment from management for controlling fraud and has been implemented in the fraud control system to reflect the serious attention from the Company’s Board of Commissioners and Board of Directors’ zero tolerance for any form of internal or external fraud. During 2023, internal and external fraud will still occured. The Board of Commissioners pays close attention to the frequency of these incidents and potential losses to reflect the serious attention the Company’s Board of Commissioners and Board of Directors pays for preventing and controlling fraud. On an ongoing basis, Management continues to make improvements in the Anti-Fraud Strategy in each pillar. In Pillar 1, Prevention, the Company instigated the following: signing an integrity pact starting from the Board of Directors, Board of Commissioners to all BRI Employees, conducting employee awareness and customer awareness activities through education and socialization, identifying vulnerabilities through analysis of control weaknesses which have and/or has the potential to cause information fraud, strengthening the Branch Risk Compliance (BRC) and Unit Risk Compliance (URC) functions and increasing Know Your Employee (KYE) which is aimed at PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 66
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