Risk management in JSC Development Bank of the Republic of Belarus forms an integral part of corporate culture and allows for providing of the Bank’s financial stability in order to realize the strategic goals set up by the shareholders.
The Bank’s risk management system is based upon recommendations from Basel Committee on Banking Supervision, the National Bank of the Republic of Belarus and practical solutions elaborated in this area of international banking practice.
The Bank’s risk management system is based upon the following approaches:
Expert knowledge approach. The Bank is aware of all key risks associated with banking operations. Decisions on carrying out of any operation (transaction) are made after the comprehensive analysis of risks resulting from such operation (transaction). Each Bank’s employee knows about the risk management system accepted within the Bank and takes part in risk management process within the frames of his \her duties.
In its operations the Bank may face the key banking risks such as credit risk, country risk, market risk, bank portfolio interest risk, liquidity risk operational risk, strategic risk, reputational risk, concentration risk.
The risk management organizational chart, information flows generated, distribution of spheres of responsibilities and powers of the Bank’s officers, procedures and order of interaction between the departments, reporting and accountability of risk management department, process of notifying the departments responsible for risks assumed in regard to risk management issues , decision making procedure are arranged by the Bank in such a way as to exclude the conflict of interests including among others between risk management department and risk generating departments as well as other departments conducting internal control with the Bank.
The organizational chart of the risk management system includes: Supervisory Board, Risk Management Committee and Audit Committee of the Supervisory Board, Bank’s Management Board, Financial Committee, Credit Committee of the Bank (Credit Committee of the branch office), Toxic Assets Committee, officer responsible for risk management, risk management department, internal control department, audit unit, Bank’s departments.
As approved by the Supervisory Board (resolution No14 dd 17.03.2022) Head of Risk-Management Department D.G. Tsekhanovich is appointed the officer responsible for risk management.
The Bank is conducting risk management by means of continuous identification, assessing, monitoring, restricting and controlling of the risks assumed. Methodological approaches to risk management, description of approaches, models, composition of management risk statements are specified by separate local regulatory legal acts accepted by the Bank.