Promotional banking plays an essential role in financing economic and social development, supporting companies, public projects and strategic initiatives that contribute to the sustainable growth of countries. To fulfil their mission, they operate in a complex global environment, marked by economic, technological, environmental and geopolitical challenges, which require responsible and transparent risk management.
In the face of these global risks, it is important to anticipate scenarios, prepare for different developments in the economic environment and adapt strategies in order to continue supporting the economy, even during periods of greater uncertainty.
A culture of control ensures that resources are used effectively and responsibly. This translates into the existence of rules, processes and internal mechanisms that promote good practices, transparency and the prudent use of funds, strengthening the trust of citizens, partners and public entities.
The risk appetite of institutions reflects the need to reconcile the ambition to support projects with economic and social impact with the preservation of their financial soundness. This balance is essential, as promotional banking assumes risks in areas where the private market has less capacity to intervene, helping to reduce market failures and encourage investment.
Within the scope of the risk profile, operational risk also represents a critical component, resulting from failures or inadequacies in internal processes, people, systems or external events, including technological risks. Its management involves the implementation of structured frameworks for identification, assessment and mitigation, such as risk and control self-assessments, the recording and analysis of loss events, and business continuity and disaster recovery plans. In promotional banking, this risk may be heightened by the complexity of financial instruments, interaction with multiple partners and the management of public programmes. Its management involves identifying vulnerabilities, preventing failures and ensuring contingency plans to guarantee business continuity.
Continuous improvement is a key principle for strengthening the institution’s effectiveness. It means regularly reviewing policies, processes and controls, learning from experience and incorporating national and international best practices. Audits, internal assessments and stakeholder feedback are important tools to ensure that the institution evolves and adapts.
Finally, a culture of compliance with standards and regulation (compliance culture) constitutes a cross-cutting element across the entire governance, internal control and risk management system. It involves leadership commitment (tone from the top), clear policies and procedures, continuous employee training, and effective monitoring and reporting mechanisms.
"Regulatory compliance must be integrated into strategic and operational decisions, strengthening stakeholder trust, institutional reputation and long-term sustainability."
Helena Barros, Coordinating Director, Risk Office, BPF
