B&N Bank has launched an integrated, operational-risk management system to reduce losses and determine coverage of operational risk capital. Using software from SAS, the leader in business analytics software and services, one of Russia's first successful operational risk management projects helps the bank meet Central Bank of Russia requirements.
The rules, based on Basel Committee principles, demand banks properly assess risks and could save B&N Bank tens of millions of dollars.
"It is essential for our shareholders and top managers to assess operational risks when shaping business strategy and operational management," said Kirill Lyubenstov, Senior Vice President of B&N Bank. "SAS helps us to quickly identify bottlenecks that we can address with the proper resources. Since B&N Bank has thousands of employees and an extensive sales network throughout the country, investments in operational risk management will pay off quickly."
"Operational risk incidents differ from case to case," said Pavel Samokhvalov, Director of Risk Management at B&N Bank. "Using SAS, we created a high-quality database of risk incidents to see current figures and to build a reasonable forecast. Now, information about all loss incidents is available and can be tested. The system can generate reports on any set of risk indicators without the help of IT staff."
"SAS is the leader in operational risk management software," said Julius Goldberg, Director of the Financial Sector, SAS Russia/CIS. "We are very pleased to see our solution developers here in Russia adopting today's best practices in collaboration with the world's leading banks."