Based on best operational risk management practices, BBVA Group has established and maintains an internal control model organized around three lines of defense (3LoD), as well as a governance scheme called Corporate Assurance. The Group's internal control model has two components.
1. The first one is the model based on three lines of defense, which guarantees compliance with the most advanced internal control standards and is organized as follows:
A model based on best practices, organized around three lines of defense and with a well-designed governance scheme
2. The second component is the Corporate Assurance scheme, which is tasked with providing a comprehensive and standardized approach to the Board of Directors and the management bodies on the Group's internal control situation. This provides timely information on the main control weaknesses that may arise in the different assurance processes and makes it possible to prioritize their solution and monitor the implementation of measures for mitigating them more effectively.
To perform its duties, the model is provided with an orderly mechanism for reporting to management. The mechanism is made up of a number of committees that meet every four months, in which members of the senior management of the Group and its subsidiaries take part. The committees seek to understand control issues and make decisions that will have a significant impact on the objectives of the various units, both at the local level and for the consolidated Group.
This Corporate Assurance scheme includes an orderly mechanism for reporting to management
The functions of the Internal Audit unit are universal in scope and include all activities and entities in BBVA Group, with no exceptions and irrespective of geographic location or reporting situation. Its scope also extends to the activities and services the Group has outsourced.
This unit has unrestricted access to employees, workplaces, systems, IT and physical records and, in general, any information required to perform its functions effectively.
The main focus of the work of Internal Audit in 2015 has been as follows:
Internal Audit: universal scope and unrestricted access to all required information
BBVA Group (1). Main Internal Audit activities by line of activity
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(1) Except Garanti.