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Indications have been established for the analysis of causes and effectiveness of control
measurement and reduction of operational risks. On the other hand, various reports allowing a
continuous following-up on these risks are made, so as to determine necessary measures to
reduce them, according to limits established by the Board of Directors. At the same time,
managements and divisions, through operational risk coordinators, are in charge of qualitative
valuation of their risks and controls.
A data basis of losses for operational risk has been design in order to complement qualitative
analysis described above through a quantitative analysis.
In this way, even if currently COFIDE bases its operational risk management on the
aforementioned qualitative actions, it seeks to move towards a management of this risk that
complements qualitative valuations with quantitative ones.
(b)
Capital management – Regulatory
COFIDE actively manages a capital basis to hedge risks inherent to its activity. COFIDE’S
capital adequacy is monitored by using, among other measures, standards and ratios established
by the SBS, taking into account policies established for capital adequacy that define appetite and
tolerance levels to risk of capital adequacy through indications that seek for optimizing the
relation risk-profitability, as well as guidelines for management and capital assignment.
The objectives of COFIDE when managing capital are far broader than net equity shown in the
statement of financial position, they are: (i) complying with capital requirements established by
the SBS; (ii) safeguard the capacity of COFIDE to continue operating so as to grant returns to its
shareholders and benefits to other stakeholders; and (iii) maintaining a strong capital basis to
support the development of its activities.
According to regulations set forth by the SBS, COFIDE is obliged to maintain a regulatory
capital equal to or greater than 10% of assets and contingents weighted per risk, comprising the
requirement of regulatory capital for market risk, for operational risk and for credit risk. As of
December 31, 2015 and 2014, COFIDE uses the standard method to calculate the requirement of
Regulatory Capital for credit and market risk, and basic method for operational risk.
Additionally, on July 20, 2011, Resolution SBS No. 8425-2011 (Reglamento para el
Requerimiento de Patrimonio Efectivo Adicional – Regulations for Additional Regulatory
Capital Requirement) was published. By means of this regulation, entities shall apply
requirements per economic cycle, per concentration risk, per market concentration risk, per
interest rate risk in bank records and other risks. This Additional Regulatory Capital requirement
must be reached within five years. Its first section is 40% of the total requirement as from July
2012. The additional requirements are annual, at 15% rate, achieving 100% on July 31, 2016. It
is important to note that the requirement per economic cycle is activated and deactivated based
on pro-cyclical provisions for loans.
As of December 31, 2015 and 2014, the regulatory capital of COFIDE, determined according to
legal standards, is (in thousands) S/.3,478,121 and S/.2,827,529, respectively; which is used to
calculate certain limits on restrictions applicable to banking entities in Peru, which Management
of COFIDE considers to have been entirely complied with.
As of December 31, 2015, assets and contingent loans weighted for credit risk amount to (in
thousands) S/11,066,813 (S/.6,050,988 as of December 31, 2014) and the equity requirement for
credit, market and operational risk, determined by COFIDE according to effective legal
standards, add up to (in thousands) S/.1,139,910 (S/.640,633 as of December 31, 2014); which
generate a global capital ratio of 30.51% (44.14% as of December 31, 2014).