Risk Management

Risk management is an ongoing process that covers all areas of Rosenergobank’s activity

For the Bank’s customers and partners, this means reliable and committed provision of services, while for the Bank’s shareholders and executives, it means being able, when necessary, to efficiently adjust the adopted development strategy and reach the set goals.

The Bank prevents the incurrence of uncontrolled risks by implementing and constantly improving its procedures, regulations, and standards.

1. Credit risks are managed by:

• carrying out in-depth expert analysis of credit applications and financial position of borrowers;
• setting risk limits for branches, regions, and each specific borrower;
• employing a system for efficiently tracking troubled loans and built-in mechanisms for working with them;
• ·pursuing an adequate provisioning policy.

2. Liquidity risks are managed by:

•  monitoring current liquidity position in real time;
• defining optimal term structure of assets and liabilities;
•  pursuing an asset and liability diversification policy.

3. Market risks are managed by:

• setting limits on open positions in financial markets;
• giving preference, when setting limits, to high-liquidity securities (for example, those on the Lombard list of the Central Bank of the Russian Federation);
• actively managing open positions.

4. Operational risks are managed by:

• standardizing and automating the Bank’s operations, processes, and technology;
• employing an information gathering system for known instances of operational losses;
• employing an efficient system for distributing obligations, authorities, and control.