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GENERAL INFORMATION
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CORPORATE MANAGEMENT
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FINANCIAL INFORMATION
A&T BANK 2013 ANNUAL REPORT
The software programs that were purchased for market risk
management and asset-liability management were installed;
hence, more effective risk management mechanisms were
established. Full conformity with Basel II regulations was
ensured. Besides, credit risk amount, the most important
component of capital adequacy standard ratio, is being
calculated daily thanks to new software put into use recently.
Since full conformity was achieved with Basel II, Basel II
Compliance Committee keeps at its job as Basel III Compliance
Committee. The regulations of Basel III and their requirements
are among the prior issues on the agenda of Risk Management
Department. With the aim of initiating interactive applications
especially related to liquidity risk management, the Department
received software and consultancy support in this field.
The Risk Management Department designed detailed
risk assessment processes in order to achieve an efficient
operational risk management practice and initiated relative pilot
schemes. The Department completed its preliminary work to
build up Internal Capital Adequacy Assessment Process; it has
been decided that the results of this work are to be evaluated
with support of an outsourced consultancy service.
In addition to these initiatives, A&T Bank has continued efforts
to switch to full automation of reporting and documentation
procedures as required under both local and international law.
In 2013, the Bank updated, expanded and refined the rules for
its internal systems. The Bank’s workflow processes continue
to undergo an extensive and comprehensive reconfiguration
to achieve compliance with T-24, the banking system; during
these modifications, the Internal Control Department and the
Inspection Council provided the necessary support to the
business units involved. Within the scope of the A&T Bank
Business Continuity Management Plan, scheduled activities
were carried out in coordination and the participation of the
relevant departments of the Bank.
During the strategic decision-making process, the Bank’s
Board of Directors and Senior Management always assess
and take into account work conducted in the context of internal
systems management including audit findings, comprehensive
risk analyses, simulations, stress tests, and the like. The
daily and other periodic audits and inspections carried out
throughout 2013 have not brought to light any situations
that could adversely affect the activities of the Bank nor any
that could prevent the Bank from fulfilling its obligations. The
Committee noted the overall success of internal control and risk
management systems. It also noted that the Bank’s activities in
general bear a manageable level of risk and that all financial and
legal reports are prepared accurately and in compliance with all
applicable laws.
Abdurauf Ibrahim Shneba
Chairman of the Audit Committee