Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 105

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 4
Chunk 105
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 be taken in light of the event that presents itself: relevant incident, critical incident and crisis.
  
54 – Form 20-F 2024 | Bradesco
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Internal communication relating to corporate incidents and crisis management is carried out in a timely manner, through the issuance of bulletins and reports according to established governance.
 4.B.20.01-11 Strategy risk
 Strategy risk is represented by the possibility of the deterioration of results, capital and/or strategic indicators (in relation to what was planned) resulting from business decisions not aligned with strategy, inadequate implementation of decisions, as well as lack and/or insufficiency of reaction to changes in the business environment.
 
4.B.20.01-12 Risk of Contagion
 The Risk of Contagion is represented by the possibility of financial loss resulting from our relationships (contractual, or not) with our subsidiaries, affiliated companies, parallel structures, controllers, investment funds, foundations, suppliers and partners not consolidated in the Prudential Conglomerate.
 Detailed information regarding our risk management, reference equity, as well as risk exposures can be found in the Risk Management Report – Pillar 3, available on the Investor Relations website (not incorporated by reference in this report).
 
4.B.20.02 Independent validation of management and measurement models for risks and capital
 The model is defined as the information that supports decision-making processes, derived from any method, hypotheses, techniques and quantitative system or approach, among others, that applies statistical, economic, financial or mathematical theories to transform data into estimates.
 The use of models in supporting business decision-making is an increasingly widespread practice in financial institutions. These tools facilitate the synthesis of complex information, standardize and automate decision making processes and enable the reuse of both internal and external data. As a result, they improved efficiency by reducing our costs associated with manual analysis and decision making.
 We employ models to support decision-making, financial reporting and regulatory compliance, and to provide predictive insights across various business areas, such as risk management, capital calculation, stress testing and other estimates from models to assess financial or reputational impacts. Thus, we recognize the existence of the risk associated with the use of the models and the importance of the process of managing this risk. The coordination of this process involves the Independent Model Assessment Area (AVIM).
 AVIM is responsible for assessing whether the models are performing as expected, according to its development and usage objectives. It identifies potential limitations, assessing possible impacts, and establishing guidelines for procedural standardization related to the Corporate