Interview with the Director of Risk Management Department Kamala Nuriyeva

The Bank has involved Ernst & Young Holdings B. V (CIS) audit company, which, as you know, is among the Big Four, in order to upgrade its Risk Management System and optimize business processes. Consultants will commence their work at the Bank early this April.

Kamala Nuriyeva, Director of the Risk Management Department, told us about the significance of this process.

Question: Ms Nuriyeva, please tell us in brief about the risk management and its significance for the banking system.

Kamala Nuriyeva: As you know, risk management is among the key factors in building the state-of-the-art and stable banking system due to the risk being an integral part of the banking business.

Risk management as a process stands for identification and assessment of possible risk events as well as implementation of measures to reduce the risk level. A correctly established risk management system enables to organize the effective bank management, significantly reduce the risk level the bank is subject to, and boosts bank's competitiveness. Such system is targeted to minimizing risks and increasing bank's effectiveness. The undeniable fact is that the high-class risk management is one of the weightiest arguments in favor of bank's goodwill and the pledge of its stable relations with partners.

Question: What does the risk management system improvement mean for the Bank?

Kamala Nuriyeva: First of all, it stands for implementing the best risk management practices into organization structure. Furthermore, this project will give numerous advantages, including:
● Action plan for the identified risks management
● Improvement of the risk management assessment process
● Coordinated risk management system aimed at increasing business effectiveness
● Improvement of interaction between structural units responsible for the risk control and management
● Elimination of functions duplication

Question: What is the goal of the business process optimization project?

Kamala Nuriyeva: The goal of the business process optimization project is to establish the bank performance standard which is required to ensure the quality work with customers and effective interaction between all divisions.

Question: What is the project targeted at?

Kamala Nuriyeva: It is our top objective to formalize and regulate business processes. Today it is one of key factors in any commercial bank's success.

The business process optimization project is aimed at preserving positive stereotypes employees have developed during their work and introducing the best practices of banks overseas.

Question: How will the outcome of Ernst & Young Holdings (CIS) B. V. specialists' work affect the Bank's performance as whole?

Kamala Nuriyeva: The business process optimization at the Bank will enable to:
● Improve the quality of the ultimate result of business process and intermediate links in each procedure.
● Shape compact, coordinated and above all controlled business process model.
● Ensure thorough actions of each performer in the process.
● Effectively manage business processes.

Question: What was the reason for selecting these consultants?

Kamala Nuriyeva: When the Bank decided to improve the existing risk management system, it announced the tender between three audit companies-member of Big Four. We examined all incoming proposals, adjusted the scope and content of works and met with representatives of companies. It took us about one month to thoroughly analyze all the proposals. As a result, the factors that influenced our choice were as follows:

● Experience in similar projects in countries of Western Europe, CIS and in Azerbaijan,
● Relevant experience of team members,
● Duration of project,
● Suggestion concerning the provision of specific output materials plus genuine interest in this project.

It is noteworthy that all three tender bids met the requirements and set objectives but we were satisfied the most with the successful bidder's offer.

The winning bidder was determined at the end of the tender early in March. The winner was Ernst & Young Holdings B. V (CIS). We are at the contract conclusion stage now, and the first phase of the project is to commence from the April 1st.