Risk Management
Besides banking activities, both financial and non-financial risks encompassing the whole group required to be analyzed, monitored
and reported from the standpoint of group risk management in addition to that of banking-specific risk management principles. This
aspect of risk management, beyond regulatory requirements has become an industry standard for corporate governance.
The risk management process, organized within the framework of advanced risk management methodologies and favors a
common risk management culture throughout the establishment, is structured to emphasize good corporate governance,
assuring independency of units responsible for monitoring and controlling risk from executive functions, so that risk definition,
measurement, analysis, monitoring, reporting, and control functions are carried out within the same framework.
A general assessment of risk by categories suggests that the most significant risk Bank was exposed in 2013 was credit risk, just
as was also the case in 2012. This was followed by market risk, especially currency risk. In 2013, capital allocation was done for
nonfinancial operational risk according to framed policy beside financial risk. On the other hand, it is observed that the most common
risks inherited in the banking processes are related to information technology. As the activities are maintained mainly with the
support of information technology, information technology risk should be monitored closely.
The process of risk management and the functions involved in that process are among the highest priority responsibilities of the
İşbank Board of Directors. The Risk Management Division, which acts through the Risk Committee and forms a functional constituent
of the risk management function in collaboration with the Bank Credit Committee and the Assets & Liabilities Committee, calculates
the capital adequacy ratio in accordance with the Basel framework and consistent with international best practices, in addition
to working towards advancing the calculations and optimizing the capital adequacy management process. Sub-units of Risk
Management Division are Asset-Liability Management Risk Unit, Credit Risk and Economical Capital Unit, Operational Risk, Model
Validation and Subsidiary Risk Unit.
Audit Committee’s Assessments on the Operation of Internal Control, Internal
Audit and Risk Management Systems and Its Activities in the Reported Period
Prof. Dr. Savaş Taşkent
Member of the Board and the Audit Committee
Füsun Tümsavaş
Vice Chairman of the Board and
Chairman of the Audit Committee
Financial Information and Risk Management
92
İşbank
Annual Report 2013
