Risk Management Policy

VTB Bank's risk management policy is aimed at creating a full-scale integrated risk management system adequate to the nature and scale of the Bank's activities and risk profile, and complying with the Bank's needs for further development.
 
A major task in risk management policy is encouraging optimal balance between risks taken and the level of yield from banking operations.

Development and improvement of risk management in the Bank is carried out in accordance with the best banking practices, generally recognized international standards and recommendations of the Basel Committee on Banking Supervision. At the same, full compliance with the Russian banking legislation, primarily Bank of Russia regulations, is ensured.

The main risk management principles adopted in JSC VTB Bank are:

• consideration of all risk types inherent to banking activity;
• systematic and multifaceted approach to analyzing various types of risks taken;
• independence of units carrying out risk assessment and control, from units initiating such operations;
• applying state-of-the-art risk assessment methods;
• clear allocation of responsibilities between authorized management bodies and Bank's employees in the decision-making process; and
• explicated reporting system at each Bank management level.

Taking into account the significant impact of risks taken by subsidiary banks on the overall performance of the Bank, special focus is placed on implementing efficient risk control on a consolidated basis or the period of integration into VTB Group.