Document from CIS Legislation database © 2003-2022 SojuzPravoInform LLC


of October 29, 2012 No. 550

About approval of the Instruction about the organization of risk management system

(as amended on 19-07-2021)

Based on the paragraph of third 34, parts one of article 39 of the Bank code of the Republic of Belarus the Board of National Bank of the Republic of Belarus DECIDES: Article parts four

1. Approve the Instruction about the organization of risk management system it (is applied).

2. This resolution becomes effective since January 22, 2013.

Chairman of the board

N. A. Ermakova

Approved by the Resolution of Board of National Bank of the Republic of Belarus of October 29, 2012 No. 550

The instruction about the organization of risk management system

Chapter 1. General provisions

1. This Instruction establishes requirements to the organization of risk management system in banks, "Development Bank of the Republic of Belarus" open joint stock company, the non-bank credit and financial organizations (further - banks), banking groups and bank holdings.

2. For the purposes of this Instruction following terms have the following values:

risk – the potential possibility (probability) of incurring which is objectively existing in uncertainty conditions inherent in banking activity by bank of losses (losses), non receipt of the planned income and (or) deteriorations in liquidity and (or) approach of other adverse effects for bank owing to emergence of various events connected with internal and (or) external factors of activities of bank;

risk management system – set of organizational structure of bank, powers and responsibility of officials, local legal acts determining strategy, policy, techniques and procedures of risk management, and also the risk management process directed to achievement of financial reliability of bank;

inherent risk – the risk which is initially present at activities of bank owing to the objective reasons;

residual risk – inherent risk after taking measures to its monitoring and restriction (decrease);

risk profile – set of the hazard rates and other data characterizing exposure of bank to different types of risks taking into account strategy and priorities of bank concerning the accepted risks;

risk tolerance – the level (size) of risk which the bank determines for itself as admissible (safe) for ensuring the financial reliability and long-term functioning proceeding from strategy, nature, scales and complexity of types of activity, and also financial position;

tendency to risk (risk appetite) – the level (size) of risk which the bank (division of bank) is inclined to accept when implementing the activities for the purpose of ensuring profit earning or achievement of other purposes;

the management reporting – the formalized and structured information on activities of bank (reporting) provided on regular basis on the established procedure to shareholders and (or) governing bodies of bank, officials for acceptance of necessary management decisions;

key indicators of risks – system of indicators (parameters) used for observation of major factors of risk and also for monitoring level of risks;

stress test (stress testing) – assessment of potential impact on financial condition of bank of number of the set shocks (shock situations), that is changes in the risk factors corresponding to exclusive, but probable events.

3. The parent organization of banking group, parent organization of bank holding which are bank shall organize risk management system in banking group and (or) bank holding on the consolidated basis so that to provide possibility of receipt of comparable information on the level of risks of members of banking group and (or) bank holding for what the single principles of risk management taking into account the requirements established by this Instruction shall be used.

4. Assessment of risk management system in bank is carried out by National Bank during implementation of banking supervision based on motivated judgment. By results of such assessment the National Bank can make decisions:


This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SojuzPravoInform LLC. UI/UX design by Intelliants.