By 2010, VTB Group had established its "Strategic Holding" governance model, which envisaged:
JSC VTB Bank
- Parent organisation
- JSC VTB Bank's subsidiaries
- Subsidiaries of JSC VTB Bank's subsidiaries
- Non-financial subsidiary of VTB Group
VRB is not a member of VTB Group, but it may significantly impact its activities due to a large holding of VRB shares by VTB.
VTB Group governance is aimed at taking the fullest advantage of the Group competitive edge, increasing its share in target markets, enhancing its performance indicators and strengthening VTB Group capitalization.
In terms of integration, VTB Group is currently implementing the Strategic Holding Model which primarily implies sharing an overall strategic vision, major concepts and best practices against a background of somewhat limited integration and centralization. Under the model, VTB Group, in particular, should have a common development strategy of all its companies, a single brand, centralized financial and risk management, coordinated budgeting and reporting systems, with a focus placed on sharing best practices and applying the same standards.
VTB Group governance is founded on the Matrix Approach which allows managing the Group along two axes:
1. Administrative management - management of the subsidiary companies as legal entities within VTB Group organizational structure;
2. Functional management - management within business areas and other functional areas at the Group as a whole.
The main governance mechanism used at VTB Group is its corporate governance, i.e. exercise of the Bank's rights as a major shareholder through participating in the management bodies of its subsidiaries. Functional coordination of VTB Group main business areas, including support and control areas (e.g., risk management, planning, budgeting and management reporting, brand, internal control and audit) serves as an additional governance mechanism.
This additional mechanism is applied in order to achieve the greatest synergy effect within the Group, to share the best practices among VTB Group member companies acting alongside certain business lines, and to limit risk exposure. Functional coordination also facilitates sharing knowledge and experience among the Group companies, and allows pooling the resources available to complete certain projects. Functional coordination helps create common standards, principles and limits to be applied to certain VTB Group business lines.