During 2021, derived from the transformation Grupo Peña Verde is undergoing, we are seeking new ways to gain competitive advantages, as well as to make processes more efficient. And, at the request of the Audit Committees to strengthen the Internal Control area with the purpose of strengthening the Company’s Corporate Governance and Internal Control System, the Corporate Internal Control Department was created to: Improve the Group’s processes through the establishment of controls and alignment with business risks, and establish formal monitoring mechanisms for the correction of irregularities in the operation of the Internal Control System, as well as the homologation of COSO (Risk-Based Control Framework) and COBIT 5 (IT Governance) methodologies at Group level.
Throughout 2021, the Group continued to devote significant efforts to strengthen internal control in all its companies, through the redesign of processes and the adoption of corporate policies and procedures; noting that by 2022 around 400 documents will be updated, including policies and procedures, in order to promote the ongoing improvement in the efficiency of processes and their corresponding risk and control assessment.
GENERAL DE SEGUROS
In the case of General de Seguros, the core processes in which we continued to make progress during 2021, in order to strengthen its internal control, were:
Internal Control Evaluation of the processes of the Business Strategy Department, the Alternate Channels Department, the Call Center Department, the Operations Department - Control Desk and the Transformation and Statistics area, as well as the operation in the Hermosillo, Monterrey, and Merida Branches. The assessments were carried following the COSO control framework and COBIT 5, in addition to the compliance review in accordance with the provisions established in the LISF, LFPDPPP, CUSF, among others, identifying risks and controls.
As part of the Corporate Governance Framework, the Comptroller’s Department carried out a Self-Assessment of Controls for the following processes: the Operations Department - Agent Administration and the Personal and Personal Claims Business Line. The Self-Assessment of Controls is a tool that has been adopted to evaluate and determine the relevance and effectiveness of the internal controls previously identified. In addition, the COSO (Committee of Sponsoring Organizations of the Treadway) evaluation was performed, which is a voluntary committee formed by representatives of 5 organizations, to provide intellectual leadership in risk, internal control, and fraud issues.
Follow-up of the implementation of the Remediation Plans, as a result of the Internal Control Evaluation of the following processes: Commercial Management, Finance Management, and Actuarial Management.
Design and implementation of a work plan for conducting inspections in the Company’s critical processes for 2022, identifying risks and controls.
Participation in the Group’s main initiatives during 2021, with the objective of identifying controls and ensuring regulatory compliance, such as the implementation of the new Core system.
Reaseguradora Patria
In the case of Reaseguradora Patria, the core processes in which we continued to make progress during 2021, in order to strengthen its internal control, were:
Internal Control Evaluation of the processes of: Technical Administration and Claims. The evaluations were carried out in accordance with the COSO control framework, in addition to the compliance assessment based on the provisions established in the LISF, LFPDPPP, CUSF, among others, identifying risks and controls.
Follow-up of the implementation of the Remediation Plans, as a result of the Internal Control Evaluation of the Treasury processes.
Regarding the follow-up of the implementation of preventive and corrective measures derived from the observations of the CNSF and the results of internal and external audits, as well as the evaluation of the internal control system itself, the Company has put into practice the recommendations issued through the aforementioned means.
