Risk Management:

Risk Management is an ongoing development process and a culture for TSKB.
 
The Banking Regulation and Supervision Agency (“BRSA”) has issued a decree on Risk Management on February 8, 2001 and TSKB adopted the BRSA standard and restructured its Risk Management organization, policies, systems and procedures.
 
TSKB has a Risk Management Group that consists of Executive Risk Committee, Bank Risk Committee, Credit Risk Committee, Market Risk Committee, Operational Risk Committee and Risk Management Unit. Their duties and responsibilities determined by the Risk Management Group Regulations which is approved by the Board of Directors. In a compliance with the segregation of duties principle Risk Management Group directly reports to the Board of Directors.
 
Risk Management Group and Executive Management are responsible for the development of risk policies and procedures. These policies include the risk tolerances, limits and operational principles. The Risk Management Unit also prepares a risk catalog which defines potential risks.