OREANDA-NEWS. April 14, 2010. Credit Standard Bank (CSB) has launched the operational risk management project in accordance with the requirements of the Bank of International Settlement's Basel II.

The purpose of the project is to meet the requirements of the world best practices on operational risk management and apply it as an effective tool to rationalize and achieve the most optimum state of business processes, mitigate the probability of occurrence of operational risks i.e. unfavorable events, raise the overall rating and trustworthiness in relation to Bank as well as add the value via boosting the quality of being rendered services.

The system will enable to measure operational risk and set the appropriate level of adequacy for capital, and work out own risk management models.

Within the framework of introduction of operational risk management system, a number of internal documents allowing to set the key principles and rules of the system has been developed. Moreover, as per the requirements of Basel's standardized approach, at the moment the automatic system of operational risk valuation is being tested.

Further steps of development of the operational risk management system at CSB will involve advancing the corporate risk culture among Bank personnel; enhancing the business processes and boosting the quality and reliability of the financial products and customer services and as a byproduct of it mitigate the operational risk events.

Open Joint-Stock Commercial Credit Standard Bank was founded in August 2003 with the charter capital amounting to 1.3 billion soums. The head office of the Credit Standard Bank is located at Tashkent. The assets of the Bank as at 1 January 2010 constituted 246.6 billion soums and the shareholding capital has reached 33.3 billion soums.