Ensuring compliance with regulations
Committed to strictly abiding by the applicable regulatory framework, we take steps to mitigate regulatory risks. To this end, we base the operation and activities of our entire personnel and divisions of Alpha Bank on clear-cut policies, while our conduct is governed by a thorough Code of Conduct and Ethics.
The Compliance Function
As a 2nd line of defence against risks due to failure to comply with the applicable regulatory framework, since 2006 we have introduced the Compliance Function in our Internal Control System. Its role is to:
- Oversee timely, comprehensive and consistent compliance of the Group with the applicable regulatory framework.
- Identify, assess and manage the regulatory risks to which Alpha Bank may be exposed.
- Undertake the effective management of regulatory risks.
The Compliance Function applies a systematic methodology and proposes improvements in cases of deviations. To this end, it undertakes to set and monitor the key performance indicators and key risk indicators (KPIs, KRIs), and calculate the compliance residual risk. Moreover, it establishes the compliance risk appetite framework.
In terms of hierarchy, the Compliance Division is under the Chief of Corporate Centre and General Counsel and reports to the Alpha Bank Board of Directors through the Audit Committee.