Risk management

RRDB conservative policy and tight risk management have allowed the bank to avoid financial losses in conditions of crisis. The bank has always adopted a very responsible approach to risk management, to pvent and minimize risks.

The bank continually reviews and accordingly adjusts its management risk strategy, credit and liquidity management policies.

Thanks to these measures, it was possible to pvent many unpleasant situations, devise new plans for conditions of financial instability and sustainable business growth. And thanks to quick and flexible solutions along with the setting up of a management risk anti-crisis system, RRDB maintained its market position and even developed further.

RRDB manages the following risks: credit, concentration of bank portfolios, liquidity, market, country, operational, legal, risk of loss of business reputation, and strategic risk.

The Bank of Russia has considerably tightened its control over banking activities especially in relation to banks providing unsecured lending. In turn, RRDB has conducted thorough analyses of forecasts and market dynamics, monitored international and national monetary and banking regulations, while the assessment of negative development scenarios and options for implementing various risks (stress-testing) has become part of the bank daily work.

The credit risk management system has been amended. RRDB has always applied a conservative approach to form its credit portfolio. In conditions of crisis, the bank first and foremost aims at ensuring stability. Today, RRDB supports traditional and known clients, enterprises primarily from the oil and gas sector. The bank main credit portfolio is accounted for Rosneft contractors and suppliers, as well as for other companies from the fuel and energy industry. The size of the borrower is not important, but priority is given to companies producing goods with guaranteed sales. RRDB continues lending to enterprises in the real sector able to make money and derive profits.

Particular attention has been paid to the strengthening of liquidity risk. In addition to the daily maintaining of instant, current, long-term and overall liquidity at the level of values set by the Bank of Russia, a specific procedure was established to manage liquidity in cash offices and ATMs. Additional cash reserves were provided for, including in branch vaults, as well as round-the-clock work for offices on stand-by to allow insuring ATM operative backing on weekends.

The bank also adopted a whole set of organizational measures to manage market, operational and other types of risks. A systematic work was conducted to minimize unlawful act risk in the field of computer technologies. The bank introduced operational arrangement programs to reduce the human factor when processing financial information, monitoring limits, etc.

RRDB has monitored more closely the risk of business reputation loss, including unfair competition on the market. The bank monitors the media daily, purposefully supports its image, and communicates with news agencies on a regular basis. Data allowing clients and partners to assess RRDB financial stability are published on the bank website.

The high quality of the bank legal work and its centralized database of normative documents ensure effective legal risk management resulting in the bank not violating any laws and the regulations of the Bank of Russia.