At GFF we analyze and manage any risks that may affect our performance, paying close attention to the evolution of business activities and the context of operation.

The Board of Directors sets the global framework for risk management, supervises that the prevention, control, and risk response activities are carried out, and follows up on the main results, all this with the support of the Risk Committee. The Risk Policy establishes the limits the Group sets for itself.

The planning and detailed follow-up falls on Senior management, with the implementation of the specialized teams in each subsidiary and country.

 

The information reaches the Board of Directors in the form of a quarterly risk board, which summarizes the performance in all categories (E.g., operational, legal, credit, etc.). In case any of the indicators are outside normal range, the Bord of Directors delegates on the President of the Risk Committee and on the team from the subsidiary the design of response measures that mitigate said risk. Likewise, the Board of Directors receives an annual report detailing institutional risks regionally, on behalf of the Group’s risk area with the support of the subsidiary’s teams.

To ensure the proper performance of this activity, we have a Risk Committee in each country we operate, and another specifically for Auditing and Regulatory Compliance.

Main identified Risks

Below, we present the main risks to our operation at Group level.

Risks Descripción Reference (page/s)
Cybersecurity
Risks related to information and technological infrastructure, including the security of information.
Page 37

Personal data

Vulnerability risk in security or improper use of the data generated and / or shared by our clients; likewise, of the information available to our employees.
Page 37
Climate change
Deals with the risks due to the physical impacts of climate change on any of the Group’s assets, which affect the operational continuity and / or business results. It includes the consequences of the occurrence of physical acute (storms or floods) or chronic (changes in the pattern of rains which cause water problems) risks, among others. For example, as is the case with the possible effects of accident rates on the insurance business.
Pages 28, 29 and 62
Corruption
Risk of bribes, fraud, money laundering, among others, which may compromise the honesty and transparency of executives and employees alike, while also compromising the company’s assets.
Pages 25 and 26
Financial

Includes the credit, liquidity, and market risks associated with our activity in the financial sector: 
Credit: client non-payment and delinquency. 
Liquidity: shortage of funds to comply with our obligations as a financial entity. 
Market: decrease of the value of the credit and investment portfolio due to changes in the variables which define it (E.g., interest rate).

Páage 76

Regarding climate change, its impact in the accident rate takes special significance in the insurance business. In
2020, we experienced the occurrence of very intense
storms in Central America, especially those related to
hurricanes ETA and IOTA.

We are also working on the progressive incorporation of climate factors in the definition of insurance policies, which will also follow for our credit related products