Operation risk

Operational risk is the risk of losses due to incompliance of the Bank’s internal regulations and order of carrying out transactions to the nature and scales of the Bank’s business and/or the requirements of the current law, their violation by the personnel of the credit organization and/or other parties (due to lack of competence, undeliberate or deliberate actions or omissions), inadequacy (insufficiency) of functionality (characteristics) of the applied information, technological and other systems and/or their failures (malfunctions), also as a result of impact of external events

In order to minimize operational risk the Bank’s Internal Control and Audit Service ensures observance of requirements on evaluation and risk management procedures by checking-up the efficiency of the Bank risk evaluation methodology and the Bank risk management (methods, programs, rules, procedures of the Bank transaction and deals, the Bank risk management), reliability of automated information data systems control, including the control of data bases integrity and their protection from unauthorized access and (or) use, action plans in case of emergency, as well as evaluation of economic appropriateness and efficiency of the operations being carried out by the Bank.