All first-time Directors are required to attend a special seminar on corporate governance for board of directors. The orientation program ensures that new members are appropriately apprised of their duties and responsibilities, before beginning their directorships, and throughout their tenure. They are furnished with a copy of the general responsibility and specific duties and responsibilities of the Board and of a Director. Directors are required to certify under oath that they have received copies and fully understand and accept the general responsibility and specific duties. The certification is also submitted to the BSP, together with a certification that he or she has all the prescribed qualifications and none of the disqualifications after their election.

The Bank also has a policy on continuing education for Directors. In maintaining their professional proficiency, the Directors are encouraged to continuously enhance their skills, knowledge and understanding of the activities that the Bank is engaged in or intends to pursue, as well as the developments in the banking industry, including regulatory changes through continuing education or training.

There are three support units of the oversight committees of the Board which are independent from the business activities of the Bank, to wit:

• The Risk Management Group (RMG) led by the Chief Risk Officer, reports functionally to the Board of Directors through the Risk Management Oversight Committee. The RMG oversees the implementation of the Bank’s ERM framework and supports business units and risk owners in identifying and assessing risks, developing mitigation plans aligned with the Board-approved risk appetite, and monitoring these plans until full resolution.
• The Internal Audit Group (IAG) of Philippine Veterans Bank (PVB) functions as the institution’s Third Line under the Institute of Internal Auditor’s Three Lines Model, providing the Board of Directors and Senior Management with the highest level of independent and objective assurance. Positioned with direct reporting accountability to the Audit Committee and the Board, the IAG operates free from undue influence, allowing it to deliver professional, risk-based evaluations that support strong governance, responsible risk-taking, and effective oversight across the Bank.

  • The purpose of the IAG is to strengthen PVB’s ability to create, protect, and sustain value by offering independent, risk-based, and objective assurance, advice, insight, and foresight. Through its work, internal audit enhances the Bank’s ability to achieve its objectives, strengthens governance and internal control processes, decision making and oversight, reputation and credibility with its stakeholders and ability to serve the public interest.

  • Based on the recent results of the External Quality Assessment (EQA) conducted by an independent assessor, the Internal Audit Activity of the Philippine Veterans Bank (PVB) is assessed as General Achievement (General Conformance) with the IIA Global Internal Audit Standards (GIAS), represents a significant affirmation of the overall quality and effectiveness of PVB’s internal audit practices.

• The Compliance Group led by the Chief Compliance Officer identifies/monitors all relevant laws and regulations or jurisdictions and ensures the Bank’s compliance in the said laws and regulations. Likewise, it is charged to ensure that all new or amended compliance policies are communicated and understood by all concerned banking units. The Compliance Department reports directly to the CGCOC.

The Board assessment process is undertaken to measure Board efficiency through a balanced and objective platform against the goals set at the beginning of the year, roles and responsibilities as mandated by the various regulatory agencies, as well as the Bank’s own Corporate Governance Manual. Further, the assessment provides the Board valuable information that can be used as guiding tools in succession planning and objective setting as well as analysis of strengths and weaknesses, enabling the Board to act and address concerns.

The Board self-assessment has three areas:

a) The Individual Directors’ Assessment;

b) The Board Assessment and;

c) The Board Committee’s Assessment

Performance assessment is conducted annually with the result summary, presented to the Board and the Committee Chairpersons for their consideration and discussion.

The Remuneration Committee and the HR Committee assist the Board of Directors in setting up a program of compensation and benefits for the Board and Senior Management that would attract the best talents in the industry. By periodically benchmarking with practices/offers in the industry, the Committees ensure the adequacy, effectiveness and consistency of the Bank’s compensation program vis-à-vis corporate philosophy and strategy.

PVB respects the rights of shareholders, as provided for in the Corporation Code, to wit:

• Right to vote on all matters that require their consent/approval;
• Pre-emptive right to all stock issuances of the Bank;
• Right to inspect corporate books and records;
• Right to information;
• Right to dividends; and
• Appraisal right.

The Bank announces in advance the venue, date, time, and agenda of the annual shareholders’ meeting, discussion of each agenda item requiring shareholders’ approval, provides opportunities to ask questions and/or raise issues. It has a method of voting, including disclosure of voting results.

Recognizing the need of shareholders for accurate and updated information, the PVB corporate web site (www.veteransbank.com.ph) contains information about the Bank’s financial condition, product and services, annual reports, news, announcements, and other valuable information. Through this website, shareholders (and other stakeholders for that matter) may request/inquire relevant information; raise questions or concerns through the contact details provided for in the website.

Veterans Bank adopts an Enterprise Risk Management (ERM) framework that embeds risk culture, capabilities, and practices into strategic planning and execution. The Bank’s ERM supports its mission by strengthening risk-based decision-making. This reduces financial losses, ensures regulatory compliance, and enhances operational resilience for the benefit of key public and private sector constituents, especially our veterans and their families, the military, and other uniformed personnel.

The Board of Directors provides the ultimate oversight and accountability for Enterprise Risk Management, through the Risk Management Oversight Committee and Senior Management, ensuring that the organization’s strategic objectives are achieved within its defined risk appetite. The Risk Management Group (RMG), led by the Chief Risk Officer, functions as the Bank’s second line of defense as it independently oversees the ERM implementation, supporting business units in identifying, assessing, controlling, mitigating, and monitoring risks, and ensuring adherence to the Board‑approved risk appetite.

The President is assisted by the following management committees, among others:

• The Management Committee (ManCom) to enable scalability, the existing management committee must be restructured under a unified charter into three distinct teams:
  • Leadership Team: Comprising 5-7 senior officers, this team exercises distributed leadership authority, takes ownership of specific tasks or missions, and plays active roles in board and management committees.
  • Executive Team: This team evolves from the current management committee to include the Leadership Team alongside group and division heads.
  • Management Team: An expanded branch that integrates the Executive Team with expertise-based middle-to-high-ranking officers within the organization.
     
• The Assets and Liability Committee (ALCO) ensures that the Bank and its business units maintain adequate liquidity, capital, and funding to meet all business requirements at all times. ALCO is tasked to effectively manage capital with strict adherence to the risk disciplines set by the Board. ALCO is chaired/led by the President and is composed of senior line management officers.
   
• The Administrative Investigation Committee (AIC) investigates offenses involving deliberate disobedience, fraud, dishonesty, unethical behavior, and other offenses that carry the sanction of suspension to dismissal.
   
• The Bank Anti-Money Laundering Evaluation Committee (BAMLEC) primarily oversees the implementation of the Bank’s AMLA Program across the organization. BAMLEC deliberates, evaluates, discusses, and approves suspicious transactions to be reported and submitted to the Anti-Money Laundering Council (AMLC) as well as issues and concerns on AML and improvements in AML monitoring and reporting processes.

The Veterans Affairs Office (VAO) was created to ensure that the Bank's primary stakeholders, the veterans, are actively engaged in the activities and programs of the Bank and, in the process, maximize the benefits that the veterans get from the Bank. To achieve this, VAO develops and implements programs, projects, and activities for the veterans either as individuals or as members of organizations or associations. These projects and activities are featured in the Bank's microsite dedicated to veterans, which can be found through this link: PVB Veterans Affairs – Philippine Veterans Bank – Veterans Affairs.