Operational Risk Management

In carrying out its business activities, the Bank has the potential to face operational risks originating primarily from human factors, procedural inadequacies, information system failures and external events. Ineffective operational risk management can cause losses for the Bank, which not only causes tangible impacts such as financial losses but also intangible impacts such as the impact of decreasing customer satisfaction and reputation, for example the risk of fraud is one of the operational risk events that can have a significant impact on Bank losses.

Regarding the potential risk of fraud, a Fraud Risk Assessment (FRA) has been arranged in accordance with Technical Instructions Number PT.8-D.2 dated 30 May 2023, which is a procedure for early detection of potential fraud risks so that fraud can be prevented and the resulting losses.