At VTB Group risks are assessed on the basis of generally accepted methodologies. However, with respect to some specific risk categories VTB Group applies its specially designed methodology and expertise gained. Alongside quantity estimates, an integrated approach to non-finance factors is also applied. Supervisory measures are provided for every risk in order to ensure that both quality and quantity parameters are met.
Risk assessment models and techniques are subject to independent and in-house evaluation. Basel Accord principles (Basel II) will enhance VTB Group positions in risks assessment.
The principal risks facing VTB Group are credit risk, liquidity risk, market risk, including securities portfolio risk, interest rate risk, currency risk and operational risk. The purpose of the Group's risk management policy is to evaluate, monitor and manage the size and concentration of these risks.
Overall responsibility for risk management at VTB is placed on the Management Board and collective bodies established by it, such as the Assets and Liabilities Committee (the ALCO) and the Credit Committee.