For its implementation, the Company uses an international standard internal control system, namely the Internal Control System developed by the Committee of Sponsoring Organizations of The Treadway Commission (COSO) that includes the control environment, risk assessment, control activities, information and communication as well as monitoring activities. The Board of Commissioners is of the opinion that in general the BRI internal control system implemented has been running well, is functioning effectively and provides adequate confidence. In 2023, in order to improve the quality of internal control, strengthening was carried out through the implementation of the ICoFR (Internal Control over Financial Report) roadmap according to the journey. Apart from aiming to achieve the reliability of consolidated financial reports, further improving the efficiency and effectiveness of internal control-based business processes, maximizing the accuracy of data and information, strengthening the adequacy of applicable policies and regulations, fostering a culture of risk awareness, ICoFR also aims to provide confidence and act as an adequate early warning system. In this way, all levels (lines of defense) can work together in carrying out the combined assurance function so as to increase value for stakeholders. The Board of Commissioners urges management to continuously improve the internal control system and ensure the completion of ICoFR implementation in accordance with the roadmap. Corporate Social Responsibility In line with BRIVolution 2.0’s aspiration to become “The Most Valuable Banking Group in Southeast Asia & Champion of Financial Inclusion”, BRI also set aspirations to achieve a “World Class Sustainable Banking Group”. To create a direct and targeted program, the implementation focus was classified into 3 (three) strategic pillars, namely Environment, Social and Governance (ESG). In the environmental aspect, BRI supports and plays an active role in realizing Net Zero Emissions (NZE). Aiming to achieve the NZE target by 2050, BRI has developed a journey through various initiatives based on the global Science-Based Target Initiative (SBTi) standards. One of BRI’s concrete steps involved implementing a work culture in line with the principles of sustainability, including optimizing digital devices, efficient use of paper and plastic, energy saving culture, and implementing a green network by using electric vehicles for operations and using solar panels in BRI business unit. For the social aspect, BRI always makes a real contribution to equalizing Indonesia’s economic prosperity through financial inclusion. Through a Hybrid Bank business model that integrates physical presence through BRILink agents, Ultra Micro synergy, and digital instructors as well as with the support of capable digital technology and innovation (digital capabilities), BRI has succeeded in offering banking network access in urban areas in 3T areas (underdeveloped, frontier, outermost). BRI’s Ultra Micro Holding Synergy also provides a more comprehensive and structured concept of empowering micro and ultra micro businesses in the form of the Ultra Micro Business Journey so that the micro and ultra micro businesse can move up in class. The commitment to carrying out sustainable business processes in the governance aspect was confirmed by BRI joining as a member of the United Nations Global Compact (UNGC) in March 2023. UNGC is a global initiative initiated by the United Nations (UN) and has 10 universal principles including human rights, employment, the environment and anti-corruption. BRI also organizes stakeholder engagement forums to gain a deep understanding of perspectives and constructive input from stakeholders. To support BRI’s consistency in implementing the ESG roadmap, the Board of Commissioners actively carries out supervision through meetings with the Board of Directors and through field work visits, including granting approval for BRI’s 2023 Sustainable Financial Action Plan, to ensure that the ESG roadmap program has been carried out consistently and effectively up to the business unit at the lowest level. The Board of Commissioners advise to BRI is to always focus on implementing sustainable financial principles, consistently and in line with the strategy for achieving the Company’s vision and mission. Performance Assessment of the Committees under the Board of Commissioners To support the active role of the Board of Commissioners when carrying out its duties and responsibilities, the Board of Commissioners has established four committees, namely: 1. Audit Committee The Audit Committee is responsible to the Board of Commissioners by providing independent opinions on matters that require the attention of the Board of Commissioners in accordance with GCG principles and applicable laws and regulations. Supervision carried out by the Audit Committee includes the effectiveness of the monitoring and evaluation system for the planning and implementation of both internal and external audits and their follow-up, reviewing compliance with laws and regulations relating to the company’s activities, monitoring and providing input on the design and process of the ICoFR (Internal Control over Financial Reporting) as well as implementation of integrated internal control, and other tasks that are presented in detail to each section of the Board of Commissioners Committee. PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 69 Report of The Board of Directors and Board of Commissioners
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