Risk Management at Bladex is characterized by sound judgment and the application of best practices, with the maintenance of asset quality as the top priority. For this purpose, the Bank built a multidisciplinary risk management team of professionals from throughout Latin America.  The Risk Area is independent from the Bank’s other areas, and its Senior VP holds veto power over credit decisions.  Its priorities are aligned with the business areas of the bank, supporting new business initiatives within a prudent risk framework.  In accordance with best market practices, and working toward the implementation of Basel II standards, the Risk area is divided into specialized units for Credit Risk, Market Risk, Operational Risk, Legal Risk, and Country Risk.  These specialized units interact to achieve an integrated analysis of the Bank’s risks.

The Risk Management Division receives periodic updates on advances in the market’s recent practices, and incorporates those that are useful for purposes of control and follow-up of the Bank’s risks.  With respect to the credit portfolio, the Division devotes special attention to the monitoring of credits granted, as well as to the countries where operations take place.  This is accomplished through contact with international rating agencies, publications, news organizations, and other sources.  The division team members also travel to meet with clients, local authorities, top-level executives, officials from financial institutions, and representatives of the international rating agencies in various countries.