Risk Management


The Bank’s official auditor :

Ernst & Young Holdings (CIS) B.V.
Address: Port Baku Towers Business Centre
South Tower, 9th floor,
153, Neftchilar avenue
Baku AZ1010, Azerbaijan
Phone: +994 12 4907020
Fax: +944 12 4907017
www.ey.com/az

Risks and Strategies of Risk Management

Risks of Azer Turk Bank are divided into the following groups:

Financial risks:

  • Credit risks
  • Liquidity risk
  • Market risks

Non-financial risks:

  • Operational risks
  • Strategic risks
  • Image and other risks

In accordance with the risk, the Bank may choose one of the following strategies:

  • Adoption of risk
  • Minimization of risk
  • Transmission of risk
  • Avoidance of risk

Azer Turk Bank uses the following tools in implementation of risk management policies:

  • system of limits
  • system of decision-making and division of responsibilities
  • system of parameters for risk management
  • system of accounting and information disclosure
  • complex of measures in emergency situations
  • control system
Azer Turk Bank uses the following analytical methods in risk management process:
  • analysis of the interest rate risk based on “GAP” method
  • analysis of currency and credit risks based on “Value at Risk” (VaR) model
  • calculation of currency risk and stress-test report on sensitivity
  • analysis of assets and liabilities (Maturity analysis)
  • liquidity risk analysis based on “GAP” method
  • total risk analysis based on statistical indicators of the portfolio
  • calculation of credit risk based on the method of default value at risk
  • calculation of operational risks based on basic indicator approach and standardized approach methods

Structures implementing risk management:

The Credit Committee is responsible for efficient management of the Bank’s credit risks. The Committee of Assets and Liabilities Management is responsible for efficient management of liquidity and funds. The Committee of Risk Management is responsible for efficient management of other risks and coordination of activities of operating committees.

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