The Bank, through its Compliance Division, remains dedicated in strengthening its money laundering prevention risk management framework to address regulatory compliance and adopt best practices. Among its initiatives are:

• Improved Compliance and AML awareness:
  • Conducted a re-orientation of CLOs, post-implementation training of the new AML system and focus group discussions on AML and the new BSP circular;
  • Issued AML bulletins and advisories;
  • Rendered consulting/advisory to Line Units on business program/project prior to implementation 
• Enhanced the monitoring and review processes:
  • Implementation of the new AML system, CTR/STR/ Alerts review process improved;
  • Established a trigger mechanism to alert/prompt the concerned units on the timely submission of regulatory reports;
  • Completed and updated the Compliance Regulatory Matrix, timely cascading and uploading of regulatory issuances in the Compliance Desk Facility;
• Strengthened compliance mechanism through the designation of a Compliance Liaison Officer (CLO) per Unit/Branch tasked to periodically conduct self-assessment to determine their Unit’s/Branch’s state of compliance with relevant banking rules and regulations and promptly address compliance issues and concerns.

Risk Management

Risk management at PVB is performed as an oversight function that remains part of the second line of defense tasked to establish, maintain and lead the continuing development of the Risk Management Framework, Standards and Policies. First line of defense rests with the Business Units and Line Management responsible to identify, mitigate and manage risks while the third line is Internal Audit, which provides independent assurance on risk assessment and processes.

2018 marked the initial implementation of an Enterprise Risk Management (ERM) at PVB.  ERM refers to  the culture, capabilities and practices, integrated with strategy setting and its execution, that PVB relies on to manage risk in creating, preserving and realizing its strategic objectives. The Framework provides for a comprehensive management of risks through the process of identifying, measuring, evaluating, mitigating and controlling, monitoring and reporting, as well as stress testing the PVB Group’s material risk exposures. It encompasses the setting of risk appetite and its thresholds.                                                                                                                                               

The Risk Management Division is comprised of four departments: Credit Risk, Market and Liquidity Risk,  Operational Risk, and Information Security. While the efficient operation of the division was hampered by a number of vacancies in 2017, the Bank’s onboarding in 2018 of experienced professionals in key risk management positions has raised the bar for PVB. The Bank continues to exert efforts in attracting new and experienced personnel to complete its manpower complement. Furthermore, the Bank always seeks to align with regulatory developments, best practices , and overall good governance.

Internal Audit

Internal Audit provides: 

• assurance on the organization’s governance, risk management and control processes to help the organization achieve its strategic, operational, financial, and compliance objectives; 
• insight and recommendations based on analyses and assessments of data and business processes; and
• independent source of objective advice.

Key Focus in 2018:

1. Continuously heighten bank-wide awareness on controls, policies and procedures and compliance therein, raising the bar of people’s commitment to quality and compliance;
2. Completed the regulatory three-year audit cycle of branches, Head Office units, subsidiaries, and system applications;
3. Full completion of 2018 Audit Plan within set revised timeline (BSP issue in the last ROE);
4. Full completion of 2018 Work Plan at the most efficient cost at an average of P60,000 per unit vs. P100,000 in prior years;
5. Value-adding performance beyond the work plan:
   • special audits on Identity theft, unauthorized withdrawals, outsourcing of G4s, BSP observations on 460 pensioners accounts;
   • 4Ps Fact Finding and full support to BAIC;
   • Clarity on PCOS/account opening issues;
   • Giving insights and advice on various manuals and Operations Committee’s Charter; and
   • Rationalization of certain units and manpower capacity.