Certification methodology

What?

Assessing risk-management efficiency is far from simple. Risk-management processes are back-office prerogative, therefore it is hard to measure their efficiency in “expenses/result” terms, customary to economists. Still, we think, that risk-management efficiency implies tuned processes of identification, assessment, management, monitoring and controlling risks multiplied by ability to satisfy targeted risk indicators, planned by shareholders in the development strategy.

How?

Risk-management efficiency is assessed on the basis of questionnaires and, if necessary, through direct contacts with bank risk-managers. Procedures and quality of managing credit, operation, market, liquidity and other types of risks are thoroughly analyzed. The following parameters are assessed for each type of risk:

• Risk identification;
• Risk assessment;
• Risk management methods;
• Risk monitoring and control;
• Final indicators.

Risk-management efficiency is assessed by Expert RA analysts (Certification commission) assisted by expert board of Forum “Risk-management-2007”, consisting of leading bank analysts and risk-managers.