2015 Annual Report

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Powers and liability

Powers and liabilities related to the Group’s risk and capital adequacy management are distributed among the management bodies, the bank’s executives and departments, and Group members.

The General Shareholders’ Meeting of the bank makes decisions on changing the bank’s authorised capital to comply with required ratios in the process of the Group’s development.

The bank’s Supervisory Board establishes the key requirements for risk and capital management, including the Group’s risk and capital management strategy; approves the risk appetite and target risk levels of the Group and the bank; and monitors compliance and the assessment of the risk and capital adequacy management system.

The Bank’s Executive Board is responsible for the effective implementation of the Group’s risk and capital adequacy management strategy and ensures the performance of internal procedures for capital adequacy assessment and maintenance of the Group’s capital adequacy.

The Group Risks Committee of Sberbank is responsible for the Group’s aggregate risk management, cascades risk appetite into limits by individual type of risks, and sets up special risk management committees.

The Assets and Liabilities Management Committee is responsible for capital adequacy management.

Bank committees for managing specific types of risks are responsible for managing the relevant types of risks of the Group within the scope of their competence.

The Risks unit of the bank designs, implements, supports, and perfects the bank’s and the Group’s risk management system on a consolidated basis and ensures that it conforms to the requirements of the bank’s development strategy, the requirements and recommendations of Bank of Russia, the recommendations of the Basel Committee on Banking Supervision, and international best practices.

The head of the Risks unit (Chief Risk Officer, CRO) controls the operations of the Risks unit and coordinates the Group’s risk management operations by participating in the bank’s committees for management of specific types of risks.

The Finance Unit prepares reports for the purposes of regulatory and management reporting, including those related to the amount of equity (capital) and compliance with statutory ratios, and also performs business planning of the bank and the Group with regard to limits and restrictions established by risk appetite and the target risk levels of the bank and the Group.

Bank departments outside the Risks Unit, which are responsible for managing specific risk types, develop, implement, introduce, support, and improve the management system for the relevant risks.

The internal audit service assesses the performance of the risk and capital adequacy management system and advises the Supervisory Board and executive management bodies of any identified weaknesses in the risk and capital adequacy management system and any efforts taken to remedy them.

Group members organise the risk and capital adequacy management process in compliance with the Group’s requirements and ensure compliance with the established limits and risk target levels.