Enterprise Risk Management



Enterprise Risk Management


Risk management at BDO begins at the highest level of the organization. At the helm of the risk management infrastructure is the Board of Directors who is responsible for establishing and maintaining a sound risk management system. The Board of Directors assumes oversight over the entire risk management process. It has the ultimate responsibility for all risks taken by the Bank.


Towards this end, BDO Unibank Group operates an enterprise risk management system to address risks it faces in its banking activities. The Risk Management Committee of the Board has overall responsibility for the Group’s risk management systems and sets risk management policies across the full range of risks to which the Group is exposed.


Enterprise risk management requires an entity to take a portfolio view of the risks i.e. business unit level and entity level. At BDO, this is being done by the Risk Management Group (RMG). It is mandated to adequately and consistently evaluate, manage, control, and monitor the over-all risk profile of the Group’s activities across the different risk areas ( i.e. credit, market, liquidity, and operational) to optimize the risk-reward balance and maximize return on capital.


The risk management process is applied at three (3) levels: the transaction level, the business unit level, and the portfolio level. This framework ensures that risks are properly identified, quantified and analyzed in the light of its potential effect on the Group’s business.







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