Concept

      Introduction of effective internal control and a comprehensive risk management system is one of the Bank's priorities designed to reinforce and build customer and investor trust. The risk management system is being implemented on the basis of the Concept adopted by the Bank.

The main objectives of the Concept are to

• determine the level of the Bank's risk tolerance
• determine the size of economic capital and its adequacy 
• delimit the functions and responsibilities of the Supervisory Board and the Managing Board of the Bank, specialist committees and branches of the Bank in the process of risk management
• introduce a single set of methods for identifying and measuring risks during the Bank's active operations, and undertake measures to optimize such risks
• develop an effective support and decision-making system taking into account the level of risk inherent in business processes
• ensure that banking operations are conducted in line with established policies, procedures and regulations
• ensure observance of the requirements of the National Bank of Ukraine concerning the required ratios and other restrictions
• ensure effective cooperation among the Bank's departments at all organizational levels in the process of risk management
• ensure the Bank's viability in crisis situations
• optimize projected profit and loss
• improve the Bank's financial stability, credit rating and image

The risk management process at the Bank is continuous and spans all structural levels: from the managerial level (the Risks Committee at the Supervisory Board and the Managing Board of the Bank) down to the level where risks emerge and are taken.

The Bank's Managing Board interacts with the Supervisory Board on matters of risk management proceeding from the generally accepted principles of corporate governance. Their interaction has two components: reporting and providing recommendations.  The function of risk management is performed by the Risk Management Department, which is independent of the Bank's business units.

The Bank's Managing Board, Credit Committee, Assets and Liabilities Management Committee are the Bank's highest collegial, operative and executive bodies responsible for organizing and carrying out the risk management process. The operative control body is the Internal Audit Service, which supervises the internal control system in operation and offers its opinions on the system's adequacy and effectiveness. The Internal Audit Service determines whether the risk management systems are adequate to the Bank's needs.