Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 412

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 412
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 to the Company’s validation and assessment
processes.

Fair value criteria are periodically reviewed,
according to the governance process, and may vary due to changes in market conditions, creation of new classes of instruments, establishment
of new sources of data or development of models considered more appropriate.

Financial instruments to be included in
the Trading Portfolio must be approved by the Treasury or Products, Services and Partnerships Executive Committee and have their pricing
criteria defined by the CMM.

The following principles for the fair
value process are adopted by the Company:

  Commitment: the Company is committed to ensuring that the prices                                                                        

  Frequency: the formalized fair value criteria are applied on  

  Formality: the CMM is responsible for ensuring the methodological  

  Consistency: the process to gather and apply prices should be                                        

  Transparency: the methodology must be accessible by the Internal                           

Control and Follow-Up

Market risk is controlled and monitored
by an independent area which, on a daily basis, measures the risk of outstanding positions, consolidates results and prepares reports
required by the existing governance process.

In addition to daily reports, Trading
Portfolio positions are discussed once every fifteen days by the Treasury Executive Committee, while Banking Portfolio positions and liquidity
reports are examined by the Asset and Liability
Management Treasury Executive Committee.

At both meetings, results and risks are
assessed and strategies are discussed. Both the governance process and the existing thresholds are ratified by the Integrated Risk Management
and Capital Allocation Management Committee and submitted to approval of the Board of Directors, which are revised at least once a year.

Should any threshold controlled be exceeded,
the head of the business area responsible for the position is informed that threshold was reached, and the Integrated Risk and Capital
Allocation Management Committee is called in timely fashion to make a decision. If the Committee decides to raise the threshold and/or
maintain the positions, the Board of Directors is called to approve the new threshold or revise the position strategy.

Internal Communication

The market risk department provides daily
managerial control reports on the positions to the business areas and Senior Management, in addition to weekly reports and periodic presentations
to the Board of Directors.

Reporting is conducted through an alert
system, which determines the addressees of risk reports as previously determined risk threshold percentage is reached; therefore, the
higher the risk threshold consumption, more Senior Management members receive the reports.

Hedging and Use of Derivatives

In order to standardize the use of financial
instruments as hedges of transactions and