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REPUTATION RISK MANAGEMENT
Reputation risk means current or potential exposure of earnings and capital resulting from unfavorable perception of a financial institution's image by its customers, counteragents, founders or supervisory bodies. This factor impact on bank's ability to establish new relations with counteragents, provide new services or maintain contacts with its current customers.
Risk Management Department analyzes market shares in regions in the following areas:
analysis whether bank products adequately match the market in the region
customer service quality analysis
bank product competitiveness analysis
analysis of the images of the Bank founders, the Members of the Board, the heads of structural units, customers, employees. The Bank has developed the Corporate Code of Ethics, which defines general
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OPERATIONAL RISK MANAGEMENT
Operational risk is minimized through introduction of the system of clear delegation of authorities, distribution of incompatible responsibilities, distribution of authorities of certain structural units and employees in performing all bank operations that require authorization while accessing the operational system, daily account verification and regular audit of operations and processes with the help of "two pairs of eyes" approach where a transaction approval is needed.
Corporate operational risk minimization procedures are based on task sharing between front office and back office. This principle implies that the employees responsible for transactions must not perform calculations and keep accounting of their own activities.
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