Baku, Azerbaijan, Dec.26
By Emin Aliyev - Trend:
Risk management committees will be created in Azerbaijani banks, according to the decision of Azerbaijani Central Bank approving new "Risk management rules" which entered into force in December 2013.
The new edition of the rules includes a classification and risk management system, strategy for their management, as well as the policy of the banks in this sphere and the organizational structure of risk management in banks.
The document envisages the creation of risk management committees in banks, as well as the creation of a chief administrator of risks post.
"The committee considers the strategy, policy and rules of risk management and amendments to them and submit these documents for the approval of the bank's supervisory board, determines the choice and frequency of the use of relevant instruments and methods, prepares a report on the current status of the risks faced by the bank and the effectiveness of the management system, and submits the worked out report to the supervisory board of the bank," according to in the text of rules.
Moreover, jointly with the bank's board, the committee is responsible for the action plan for risk management in emergency situations and submits it to the supervisory board.
According to the rules, the powers of the chief administrator of risks include the working out a relevant strategy and policy, as well as control over their implementation and coordination of activities of various structural units of the bank in the sphere of risk management.
Some 43 banks operate in Azerbaijan.
Translated by L.Z.
Edited by C.N.