Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 431

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 431
---
 default impact of the reinsurance companies.

Operational risk

Operational risk is the possibility of
losses resulting from failure, deficiency or inadequacy of internal processes, people and systems, or resulting from fraud or external
events, including legal risk and excluding risks arising from strategic decisions and image of the Group.

Operational risk management

The Group approaches operational risk
management as a process of continuous improvement, aiming to monitor the dynamic evolution of the business and minimize the existence
of gaps that could compromise the quality of this management.

The entire Corporate Governance process
for operational risk management is monitored quarterly by the executive committees of Grupo Bradesco Seguros and Banco Bradesco, each
with its own specificity, having, among others, the following responsibilities:

  Periodic assessment of operational risks faced                                                     

  Development of the Operational Loss Database                     

  Training and dissemination of the internal control  

  Ensure compliance with the Group's operational     

  Ensure the effectiveness of the Group's operational  

  Approve and review definitions and criteria,                                                          

  Evaluate and submit for validation by the Executive                                                                                     

  Ensure compliance with ethical standards.  

Within this scenario, the Group has mechanisms
for evaluating its Internal Controls system to provide reasonable security regarding the achievement of its objectives in order to avoid
the possibility of loss caused by non-observance, violation or non-compliance with internal rules and instructions. The internal control
environment also contributes to operational risk management, in which the risk map is regularly updated based on self-assessments of risks
and controls.

  40.7.      Operational risk  

Operational risk is represented by the possibility
of losses resulting from external events or failure, deficiency or inadequacy of internal processes, people or systems. This definition
includes the legal risk associated with inadequacy or deficiency in contracts signed by the Group, sanctions due to non-compliance with
legal provisions and compensation for damages to third parties arising from the activities carried out by the Group.

Operational Risk Management Process

Operational risk management is
carried out in a corporate manner and involves several areas with specific responsibilities to ensure an efficient structure, which allows
the risks to be adequately assessed and supports managers and Senior Management in decision-making.

The process comprises steps such
as identification, assessment and continuous monitoring of operational risks inherent to the Group's activities, including new products,
services and partners, aiming to adapt them to legislation and procedures and controls, as well as the regulatory environment, the result
of which and its