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DamirBank improves risk management

21 June 2011 14:10 (UTC +04:00)

Baku. Elnur Huseynguluyev â€“ APA-Economics. Fulfillment of new large-scale project aiming to improve the risk management in accordance with the agreement signed in March between Azerbaijanâ€™s Damirbank and IFC has started.

Bank says diagnostics on risk management was conducted during the first phase. Thereafter, a presentation was held by the participation of the heads of board of directors and related structures.

Within the framework of the project, in accordance with Basel II, risk management policy, rules, procedure, instructions and methodology, as well as domestic policy and committee regulations will be improved, a strategy on distribution of authority, the best practice existing in the world in this sphere will be used.

Note that, internal approaches on determination of parameters (PD, LGD, EAD) used in credit risk management sphere will be prepared and applied. Key indicators in operation risk management will be improved, as well as Risk Control Self Assessment (RCSA) will be applied. Besides, according to the principles of Basel II, an internal approach will be prepared and applied on Internal Capital Adequacy Assessment Process (ICAAP).

Note that, a variety of procedures, rules, procedures, instructions and policies on risk management were developed and implemented over the past few years in DamirBank. Different analyses and the best models on credit, market and operational risks management are developed and deployed at the bank.