JSCB «Forshtadt» (JSC) systematically exploits the opportunities available to it to achieve its growth targets without losing sight of the related risks. The primary objectives of «Forshtadt»’s risk management division are to prevent the Bank from taking on risks that could threaten its survival and to assist it in achieving an optimal level of risk-return in connection with its various transactions.
The Bank recognizes the following risks as the most significant.
The risk of the Bank incurring losses as a result of non-fulfillment of contractual obligations by the borrower or counterparty to the Bank.
The risk of losses incurred by the Bank as a result of adverse changes in the fair value of financial instruments and goods traded in an organized market, as well as foreign exchange rates and (or) discount prices for precious metals.
The risk of the Bank incurring losses as a result of the unreliability and shortcomings of the Bank's internal management procedures, the refusal of information and other systems, or the impact of external events on the Bank's activities.
Interest rate risk of the banking book
The risk of deterioration of the Bank's financial position due to a decrease in the amount of capital, income level, value of assets as a result of changes in interest rates on the market.
The risk of the Bank's inability to finance its activities, that is, to ensure the growth of assets and fulfill obligations as they occur, without incurring losses in the amount threatening the financial stability of the Bank.
The risk arising from the Bank's exposure to major risks, the realization of which can lead to significant losses that could pose a threat to the Bank's solvency and its ability to continue operating. The concentration risk is accounted for by the Bank as part of the procedures for managing certain significant risks.