Risk Management

The Supervisory Board and Management Board of FUIB has always taken measures aimed at enhancing the risk management and mitigation process by determining the procedures for assessing their quantitative parameters and developing risk management methods applying the practices restraining risks at the level not threatening the interests of the Bank’s creditors and depositors and the Bank as a whole.

The Bank’s strategic goal is to manage the revenue to risk ratio. Traditional risk management is based on compliance with the requirements of the National Bank of Ukraine and introduction and implementation of the internationally recognised risk assessment and management practices. The Management Board considers that to ensure substantial growth of the Bank’s business it is expedient to analyse the risks together with the rate of return as set by the shareholders.

The Bank’s Risk Management strategy aims to evaluate, monitor and manage the size and concentration of risk arising in course of the Bank’s activities. The Risk Management key strategic goal is to enhance the qualitative risk assessment in order to ensure better management of those risks peculiar to specific banking operations and to control the total risk the Bank is exposed to with the view to mitigating the impact thereof on the Bank’s contributed capital.

The Risk Management key objective is to prevent risks, minimise the damage incurred in connection therewith, and maximise the profit from risk management.

To ensure achievement of the risk management goals and objectives FUIB:

• analyses possible adverse consequences of risky situations and identifies the actual risks in order to determine those specific areas of the Bank’s activity to be managed;
• develops the measures aimed at preventing and mitigating the damage from partially unidentified risk factors, unforeseen events by analysis of the negative effect of crucial scenarios on the Bank’s activity as a whole;
• applies the risk adaptation and tolerance system aimed both at neutralising and compensating the possible adverse consequences and maximising the opportunities for generating high income.

The Bank’s risk management policies and systems are continuously modified and enhanced to reflect changes in the market and products.

You may click links set out below for reviewing Banking Risk Management and Control Policy in both English and Ukrainian.