CORPORATE GOVERNANCE

Experts Panel

Corporate Governance Information
a. Guidelines for the work of the Board of Directors and the Board of Commissioners

The duties and responsibilities of the Board of Directors are as follows:

• Leading, managing and controlling the Company in accordance with the purposes and objectives of the Company's company;

• Control, maintain and manage the Company's assets;

• Prepare an annual work plan that contains the Company's annual budget and obtains approval from the Board of Commissioners       before the new financial year begins; and

• Implement the approved annual work plan.

 

The duties and responsibilities of the Company's Board of Commissioners are as follows:

• Supervise and provide advice to the Board of Directors regarding the management of the company;

• Supervise the implementation of company plans and work plans;

• Monitor and evaluate the performance of the Board of Directors;

• Supervise the implementation of risk management;

• Supervise and ensure the effectiveness of the implementation of corporate governance;

• Monitoring the company's compliance with applicable laws and regulations.

 

b. Code of Ethics

 

1. The principles of the applicable Securities Company code of ethics include, among others, prioritizing the interests of customer         transactions over those of affiliated parties.

2. Implementation of code of ethics socialization and enforcement efforts: all employees are socialized on the principle of knowing        customers and implementing customer transactions. If there are violations committed by employees, they will be subject to                sanctions in accordance with the Company's management policies.

 

c. Risk management functions and policies

 

The Company establishes comprehensive risk management policies and strategies including the application and approval of risk limits as a whole, per type of risk, and per functional activity (business activity).

 

The company determines the risk limit taken and risk tolerance for capital adequacy by setting the customer transaction limit as the risk tolerance limit that can be managed.

 

The types of business risks faced by PT Panca Global Sekuritas consist of:

• competitive risk

• operational risk

• financial risk

• technology risk

• human resource risk

• risk of policy changes by authorities

 

d. Internal audit and compliance policies and functions

 

The compliance and internal audit functions are under the President Director.

 

The company has a compliance function pact that regulates, among others, the principles, roles, responsibilities, authority of the compliance function and its relationship with the board of directors and other functions in the Broker-Dealer.

Internal audit

The activities of the Internal Audit Unit help the Company achieve its objectives through a systematic and controlled approach to evaluate and improve the effectiveness of risk management and internal control.

Duties and Responsibilities of Internal Audit Unit Activities

 

a. Develop and carry out annual internal audit unit activities based on risk priorities in accordance with company objectives;

b. Test and evaluate the implementation of the company's internal control and risk management system in accordance with                      company policies;

c. Conduct inspections and assessments of efficiency and effectiveness in the fields of finance, accounting, operations, human              resources, marketing, information technology and other activities;

d. Provide improvement suggestions and objective information on the activities examined at all levels of management;

e. Make a report on audit results and submit the report to the President Director and the Board of Commissioners;

f.   Monitor, analyze and report on the implementation of follow-up improvements that have been suggested;

g. Develop a program to evaluate the quality of the internal audit activities it carries out; and

h. Conducting special inspection if needed.