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Maturity of risk management in Belarusian financial sector evaluated

Economy 03.12.2019 | 13:48

MINSK, 3 December (BelTA) – The audit company Deloitte in association with the Institute for Strategic Risk Analysis in Decision Making has performed the first analytical survey to evaluate the degree of maturity of risk management in Belarus' financial sector. The results were presented in Minsk on 3 December, BelTA has learned.

The survey is supposed to provide executives and risk managers with a tool for an independent evaluation of the current level of maturity and for evaluating the effectiveness of risk management in accordance with the standard ISO 31000 (as well as national derivative standards) and the best international practices. The Association of Belarusian Banks acted as a partner in this project. “The survey demonstrated the predictably high maturity of the Belarusian banking sector. At the same time there are areas that need more attention,” Director General of Deloitte in Belarus Olga Stepaneyeva said.

Results of the survey are based on anonymous answers of risk managers and top executives from the Belarusian financial sector.

It has been ascertained that all those polled have a risk management policy approved either by the director general or the board of directors. A risk management unit is present in the organizations of 94% of those polled. The unit was set up more than five years ago in the organizations of 90% of those polled. As many as 94% of the respondents noted that their risk management committees and audit committees review the practices at least every quarter of the year. Top executives, boards of directors, risk managers, and the relevant committees are responsible for managing risks in organizations of 91% of those polled.

The experts believe there is potential for developing Belarus' financial sector through deeper integration of risk management into planning, budgeting, and decision-making processes. They also mentioned favorably the integration of IT systems and the expansion of the amount of data used for risk management.

The Association of Belarusian Banks was established in 1990 with a view to coordinating the operation of credit and finance institutions. At present it unites 36 banks and organizations. The association is one of the founders and a member of the International Coordinating Council of Banking Associations of the CIS, Central and Eastern Europe.

Deloitte is an international chain of companies that provides audit services, consulting, financial advice, risk management, tax administration, and accompanying services. It operates in 150 countries.

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