2019 Anual Report
Corporate Government
The National Exterior Commerce Bank, S. N. C. is in possession of an internal control system that is built in a corporate government structure, which is formed by the Management Board, also by the different committees that oversee the decision making on the different topics of the institutional operation such as: integral management of risks, credit activity, investment services, human resources and institutional development; computerized systems, auditing and internal control. Furthermore, it has a periodic evaluation that is made by different taxation instances that are supported in the managing of the institution’s development.
The establishment and support of the internal control is overseen by the general management board of the institution; also, by its government body and its employees. The fulfillment, supervision, and upgrading of the internal control is a continuous and recurring process in the institution.
On the other hand, the auditing committee is a dependent body of the Management board that oversees the evaluation and tracing of the institutional activity, in the frame of SCI. Likewise, it is formed by independent counselors and has a role with the commissioners.
On basis of the above, and according to the general and applicable character institution dispositions of credit (dispositions), discharged by the National Banking and Values Commission (CNBV), the institution counts with the Institutional Model of Internal Control (MICI), which was upgraded and approved by the Management Board in October 2019, that also includes the objectives and linings, and obeys the purpose of establishing the general framework so that the institution’s personnel implements the SCI in the areas and its competitive processes.
The elements of the model are described in the next graphic:
- Operations
- Information
- Compliance
- Environment Control
- Risks Evaluation
- Control Activities
- Information and communication system
- Monitoring and Surveillance Activities
- General Director and Deputies
- Department Directors
- Operational area
- Functions
The MICI has the purpose of contributing to the generation of an environment that promotes the reasonable fulfillment of the institutional objectives, the performance ordered by the operation, the proper management of risks, the normativity, the development of the processes trough the efficient use of the resources, trust in the institutional information and the prevention of the loss of resources.
In support to the MICI the definition of the Three lines of Defense has been defined. It prevents its implementation in three work groups, with activities and defined responsibilities, with the purpose of mitigating in a reasonable way the risks, trough the establishment and operation of internal controls.
The first line of defense refers to the share in a director’s level, mainly from the areas of business, to manage the risks and implement its own controls. The second line refers to the functions of risk’s supervision, control and accomplishment of policies, and to established standards in the institution, engaging specific, transversal and general risks. The third line is controlled by the Internal Auditing Board (DAI), which gives independent supervision to the first two, evaluates the SCI, identifies weaknesses and recommends improvements. Likewise, the DAI reports directly to the Auditing Committee.
It is also worth mentioning that it annually evaluates the functioning of the system of internal control and that, in result, a, Annual Report is evaluated that saves the internal institutional control, which that is presented by the Management Board and the Auditing Committee of the Institution, also to different taxation instances. In this sense, the areas of opportunity that are highlighted trough the evaluation are being attended by the different administrative units according their field.
Moreover, control routines are implemented by means of the settlement of a standardized evaluation methodology, which consist in applying periodic mechanisms of self-evaluation of the critical processes of the banking operation, trough surveys that allow to verify control points and to be in the possibility to identify possible incidences that motivate the accomplishment of the correct settings of these processes.
Additionally, there are the proper settings and strategies in safety managing of information, that regulate the use of equipment and Information and Communication Technologies (TIC’s) services, to contribute to the fulfillment of the Mission, Vision and Objectives of the Institution.
Finally, the Security System of Management and Information (SGSI) is the foundation ti design, instrument and evaluate the security of information measures and focus its efforts to the improvement and consolidation of the system.
