Operational Risk

Operational risk appears through the company’s organic units and includes a long list of harmful scenarios. In addition, the loss due to operational risk may come from credit factors, market factors or other reasons, therefore, the assessment and management of operational risk methods could significantly differ from the respective procedures for different types of risk.

The company's operational risk management process includes:

• Identification of significant operational risks.
• Quantitative and qualitative analysis of identified risks.
• Report including the results of operational risk identification and treatment in the most effective way possible (applying appropriate and drastic measures to reduce risks and monitoring for maximum efficiency).

In addition, the risk management team adopts an operational risk strategy that includes the following fields:

• Detection of operational risks and their recognition from operational risk sources.
• Description of the risk profile (for example, the main risk factors depend on the size and complexity of the enterprise).
• Determination of objectives - according to the Company's exposure to some kind of risk - expressed as a measurable value, useful for management purposes.
• High-level description of the tools used for operational risk management.
• Integration and implementation of comprehensive research management of operational risks in banking institutions.