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Editorial

Dear valued readers,

Today we speak about Operational risk. Please welcome our Guest editor, Magdalena Batinkova, Director Enterprise Risk & Compliance who will tell us more what exactly is operational risk, how reporting operational risk makes our working life easier, should we be afraid to report operational risk events and how we should do it.

We shall Meet & Greet Ralitsa Angelova, Head of Operational Risk Direction, who shares with us more about how the operational risk is managed at TBI Bank and how risky person she is in life.

In our Did you know? section we share with you how risking in deep waters, reveals new horizons for a colleague who has just discovered a new passion in life – diving.

Do you want to become our next Guest Editor or just want to share your hobby and passion with us? Write us back!

Desislava Mihova,
Internal Communication manager

Guest Editor’s Corner

Operational risk is the likelihood of loss due to inadequately constructed or mistakenly executed business processes, human errors, improper system performance or loss due to the external environment, including legal risk. The legal risk includes, but is not limited to, exposure to fines, sanctions or compensation for damages as a result of actions by supervisors or legal disputes.

Operational risk has only recent years been identified as something that should be actively measured and managed by a company in order to meet its objectives for stakeholders, including shareholders, customers, and management, but most of all – to help you better organize their working processes and activities.

Some examples for operational risk in banking operations are unauthorized or incorrect transactions/payments, fraud with consumer credit, fraud with fake documents of the clients, cash deficit, incorrect customer identification, unauthorized lending where a loan officer ignores rules, or rogue trading in which a trader is involved in trading activity beyond limits of authorization, damages caused by natural disasters, storms, heavy rain / snow, system interruptions/malicious acts of third parties and etc.

Guest Editor’s Corner

Operational risk is the likelihood of loss due to inadequately constructed or mistakenly executed business processes, human errors, improper system performance or loss due to the external environment, including legal risk. The legal risk includes, but is not limited to, exposure to fines, sanctions or compensation for damages as a result of actions by supervisors or legal disputes.

Operational risk has only recent years been identified as something that should be actively measured and managed by a company in order to meet its objectives for stakeholders, including shareholders, customers, and management, but most of all – to help you better organize their working processes and activities.

Some examples for operational risk in banking operations are unauthorized or incorrect transactions/payments, fraud with consumer credit, fraud with fake documents of the clients, cash deficit, incorrect customer identification, unauthorized lending where a loan officer ignores rules, or rogue trading in which a trader is involved in trading activity beyond limits of authorization, damages caused by natural disasters, storms, heavy rain / snow, system interruptions/malicious acts of third parties and etc.

Our department is constantly improving our risk management assessment and is always there for you – either support you in identifying a risk event, register operational risk events in the help desk platform or organize for your team training for what is operational risk,  how to reported it and risk related self-assessment of your internal processes.

Magdalena Batinkova, 
Director Enterprise Risk & Compliance

Magdalena Batinkova, 
Director Enterprise Risk & Compliance

MEET & GREET

“Corporate governance is the glue that holds an organization together in pursuit of its objectives, while risk management provides the resilience” (Kevin W. Knight)

Today we speak with Ralitsa Angelova who has joined TBI Bank in February 2017 as Head of Operational Risk Direction, Enterprise Risk Management Department, after more than 8 years risk related experience in the banking sectors. She will tell us more about how the operational risk is managed at TBI Bank.

What made you choose exactly the Operational Risk Direction?

The charm of the operational risk is to have a direct contact with the colleagues and to support them in solving their operational risk issues and in taking prevention measures and solutions for occurrence of operational risk events. Another passion of mine, is the statistical analyses and preparing the Internal capital adequacy analyses (ICAAP) calculation and stress-test analyses, are my utmost pleasure.

How risky person are you in your day to day life?

If you’re planning on skydiving or trying your hand at bull riding, you probably understand it could be dangerous. But, we rarely consider the risks in our day-to-day activities, mostly because we do them without thinking. But I am really so much fond of all risk related thematic, that I am a visiting lecturer at the Bulgarian Scientific Institute. Risk is my second nature.

MEET & GREET

“Corporate governance is the glue that holds an organization together in pursuit of its objectives while risk management provides the resilience” (Kevin W. Knight)

Today we speak with Ralitsa Angelova who has joined TBI bank in February 2017 as Head of Operational Risk Direction, Enterprise Risk Management Department, after more than 8 years risk related experience in the banking sectors. She will tell us more about how the operational risk is managed at TBI Bank.

  1. What made you choose exactly the Operational Risk Direction?

The charm of the operational risk is to have a direct contact with the colleagues and to support them in solving their operational risk issues and in taking prevention measures and solutions for occurrence of operational risk events. Another passion of mine, is the statistical analyses and preparing the Internal capital adequacy analyses (ICAAP) calculation and stress-test analyses, are my utmost pleasure.

  1. How you manage the operational risk at TBI Bank?

TBI Bank fully adopts principals related to operational risk management in accordance with EU Regulations.  We are working on establishing effective processes to identify, manage, monitor and report the operational risks we might be exposed to, and setting adequate internal control mechanisms. The main processes of the management of the OR are identification, assessment, analyses and reduction. ERM Department present on monthly basis to Management Board and Risk Committee, an operational risk report including analyses and concrete measures to be undertaken. The Bank management is fully dedicated at taking actions and constant efforts aimed at preventing or mitigating operational risks.

  1. How risky person are you in your day to day life?

If you’re planning on skydiving or trying your hand at bull riding, you probably understand it could be dangerous. But, we rarely consider the risks in our day-to-day activities, mostly because we do them without thinking. But I am really so much fond of all risk related thematic, that I am a visiting lecturer at the Bulgarian Scientific Institute. Risk is my second nature.

IN FOCUS

There is no wrong reporting

Should we be afraid to report operational risk events?

The answer is definitely not! Many people believe that reporting of Operational risk events will bring negative consequences to them, which is not at al the case.  On the contrary, you will support the smooth functioning of our business. There is no wrong reporting – the heads of departments with the support of ERM Department when needed, will identify if the reported even is operational risk or not – all you need to do is to alert for it!

Are there any legal requirements or regulations for us to report the operational risk events?

Reporting the OR events is a requirement of Central Banks and EU Regulations. It is one of the components of ICAAP. Every month Enterprise Risk Management Department prepares operational risk report and presents it to Management Board and Risk Committee.

Preventing and tackling operational risk is the responsibility of all of us, not a single department. Your contribution really matters.

INSIDER

Where and when should the operational events be reported?

The bank has created internal platform for registration of operational risk events in the Help desk to which each Head of Department has access. When identified, the operational events should be reported daily, , when identifying an event in the system by heads of departments.

What to do? Inform your manager immediately for all the cases that you believe are related to operational risk. You can also inform Enterprise Risk Management Department HERE.

Our Department could support the registration of the operational risk events. We have planned a dedicated training for what is operational risk and how to report it.

FOR YOU

How reporting operational risk events makes your working life easier?

By reporting operational events, you contribute to the improvement of your day-to-day operational work and make your working life easier, by helping the bank identify and resolve the problem, change the process and make it more efficient and easier for you to do your duties.

After you identify the risk event and report it to your manager, targeted efforts and actions will follow aimed at preventing or mitigating operational risks.

DID YOU KNOW?

"Risking in deep waters, reveals a shockingly vibrant world" says Magdalena Batinkova

When I signed up for the course, scuba diving seemed like a great adventure, but then you're being asked to put your face in the water and inhale. Seriously? When you first start your scuba-diving course, you might not have any idea what to expect. Then it’s the role of your instructors to paint a very clear picture of what safety steps you must master before you'll be allowed to venture into the depths of whatever sea or lake or river sits nearby. Scuba Courses are taught in "Baby Steps" and it is normal to forget skills, hand signals, and other instructions. Scuba diving takes a little getting used to - but it's worth the effort!

Did You Know?

“Risking in deep waters, reveals a shockingly vibrant world” says Magdalena Batinkova

When I signed up, scuba diving seemed like a great adventure, but then you're being asked to put your face in the water and inhale. Seriously? When you first start your scuba-diving course, you might not have any idea what to expect. Then it’s the role of your instructors to paint a very clear picture of what safety steps you must master before you'll be allowed to venture into the depths of whatever sea or lake or river sits nearby. Scuba Courses are taught in "Baby Steps" and it is normal to forget skills, hand signals, and other instructions. Scuba diving takes a little getting used to - but it's worth the effort! Some divers take to scuba diving as if they were born part-fish. They put regulators in their mouths and off they swim! However, this "natural" diver is the exception rather than the rule. For most new divers, like myself, scuba diving feels a little strange at first. But I was patient with myself, didn't rush through skills training, and took my time beneath the surface.

And then it came…. a shockingly vibrant world which leaves you breathless.

Take a try.

EAGER TO LEARN

Top 10 operational risks for 2017 

By Risk.net

Financial institutions face a range of operational challenges in 2017. In this article you can learn more about  the top 10 operational risks of 2017, as identified by various risk practitioners. Read more.

QUOTE OF THE DAY

“Opportunity and risk often come in pairs” - Dimitrina Ivanova, Expert in Enterprise Risk Department.

Write us back at tbi.inside@tbibank.bg and become our next GUEST EDITOR, share your TALENT or HOBBY, or just let us know how you feel about TBI {Inside}.

Write us back at tbi.inside@tbibank.bg and become our next GUEST EDITOR, share your TALENT or HOBBY, or just let us know how you feel about TBI {Inside}.