Risk Management

The aim of the risk management system is to maintain the total risk accepted by the Bank at the level defined by the Bank in accordance with its own strategic objectives. The priority is to provide maximum safety of assets and equity by means of minimization of risks exposure that can cause unexpected losses.

The aim of the Bank risk analysis and management system is achieved on the basis of a comprehensive and systemic approach which implies settlement of the following issues:

• recognition and analysis of all risks that the Bank assumes in the course of its activity;
• qualitative and quantitative assessment (measurement) of certain risk types;
• establishing interrelations between certain risk types in order to assess influence of measures on minimalizing of one risk type on the growth or reduction of other risk levels;
• carrying out full analysis of the risk related to completed and planned operations of the Bank in order to define the total amount of bank risks;
• assessment of admissibility and reasonability of the aggregate size of risks;
• creation of the risk monitoring subsystem on the stage of a negative trend, as well as the subsystem for quick and adequate response aimed at risk prevention or minimization

The following types of risk have an impact on the Bank’s stability:

• Credit risk
• Market risks (Stock exchange risk, Foreign exchange risk, Interest rate risk)
• Liquidity risk
• Operational risk
• Country risk
• Legal risk
• Strategic risk
• Risk of business reputation loss (reputation risk)